FactSet Acquires Vermilion Software for $67m, Sees Strong Quarterly Earnings

FactSet recently made two acquisitions this previous quarter, buying Vermilion Software and CYMBA Technologies.

FactSet Research Systems Inc. (NYSE:FDS) (NASDAQ:FDS), a provider of integrated financial information, has bought Vermilion Software Limited for a sum of $67.0 million, part of its latest string of acquisitions, per a company filing.

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FactSet has been active in the mergers and acquisitions (M&A) realm, which has made a splash after buying Vermilion and CYMBA Technologies Limited for $67.0 million and $8.0 million respectively. Its more paramount buyout, Vermilion represents the integration of the group’s solutions services.

Vermilion is a global provider of client reporting and communications software and services for the financial asset management industry. CYMBA is a supplier of business solutions for asset managers – both acquisitions were funded with cash.

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The recent M&A activity follows after a successful quarter for FactSet, which saw its Q1 earnings for the 2017 fiscal year secure revenues growth of $288.1 million. For the quarter ending November 30, 2016, FactSet also experienced a rise in its operating income, growing $90.3 million YoY from Q1 2016.

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Furthermore, FactSet’s diluted earnings per share yielded $1.66 in Q1 2017, compared to $1.43 in the same period of the fiscal year in 2016, helping fund the joint acquisitions. In terms of its client count, FactSet also experienced a strong uptick in this area, reflective of a total of 3,116, a net increase of 24 clients over the past three months that was driven by the recent acquisitions of Vermilion and CYMBA.

FactSet originally acquired Vermilion last month – the purchase was fuelled by a growing need for client reporting amidst a shifting regulatory atmosphere, both in requirements and sophistication. In particular, the Vermilion Reporting Suite (VRS) will help create and contribute to a new workflow around all elements of the client reporting process.

Previously, in September 2016, FactSet also completed its acquisition of CYMBA – as a UK-based company, CYMBA has a supported a solid foundation of core order management system functionality through its product suite.

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