Reuters to purchase U.S.-based firms

Press, 22 October 1986, Page 39

Reuters to purchase U.S.-based firms

NZPA-Reuter New York Reuters Holdings pic has announced agreements to acquire Network Utilities Inc., a Chicagobased firm that specialises in securities analysis, and Reveal Software Inc, a New York company that produces computer software packages for managers. Reuters, which is traded on the NASDAQ exchange under the symbol RTRSY, said it would pay SUS 7 million in cash for Network Utilities and $U5575,000 for the assets of Reveal Software which is based in Roslyn, New York. Both United States companies are private.

Network Utilities, founded in 1982, provides real-time analytics for

securities . and options traders enabling them to pinpoint and evaluate trading opportunities. It has about 360 terminals in place providing the company’s “Schwarzatron” products, named after Steven Schwartz, its founder and chie executive officer. The company’s pre-tax profits totalled $U5696,200 on revenues of SUS 3 million for its fiscal year ended May 31, 1986. Further application of the company’s expertise is likely in other markets served by Reuters — particularly foreign exchange, Government securities and commodities. Mr Glen Renfrew, managing director and chief executive of Reuters, said, “Network Utilities produces the most attractive

analytics service we have seen. “It fits neatly into the total package Reuters is preparing for securities markets. We believe there is a substantial international market for Network Utilities’ product given the rapid growth of options trading worldwide,” Mr Renfrew said. “The opportunity to use Network Utilities' technology and software with Reuter data, the Reuter customer base and Reuters’ world wide reputation is a most exciting development,” Mr Schwartz said. Reveal Software, founded in 1981, provides a portfolio management software package for registered representatives and investment managers. It has sold about 1500 of

its packages to date. The company’s chief executive, Mr Mel Berman, will remain in that post for a minimum of three years during which time he will provide consulting services to Reuters. Reuters supplies a wide range of services to both business subscribers and the news media. Reuters obtains its .information from 101 exchanges and over-the-counter markets, from data contributed directly by 2593 subscribers in 69 countries and from a network of 906 journalists, photographers and cameramen. It distributes this information via 91,602 video terminals and teleprinters and directly into client computers.