Capital IQ, a business unit of Standard & Poor's and a major player in the financial information services industry, has signed a deal to acquire TheMarkets.com for an undisclosed amount. While the deal itself isn't expected to be valued at an eye-popping figure, the ramifications of the move could be significant.
There are only four big players in the financial information services industry—Factset , Thomson Reuters , Bloomberg, and Capital IQ—and analysts peg the value of the industry between $15 - $23 billion with growth expectations of between 5% - 7% annually.
Capital IQ is hoping the move to acquire TheMarkets.com could transform an industry where just a few companies compete fiercely with each other to gain the upper hand.
Capital IQ also says that by buying TheMarkets.com, which was formed by the Big Seven banks in 2000, it will have access to unique content from top Wall Street firms like Goldman Sachs , Morgan Stanley & Citibank . They also point out think the move could signal further M&A activity in an industry that's ripe for consolidation.