OMAHA, Neb. -- DTN Holding Co. Inc. (DTN) has been acquired by Spain-based IT company Telvent, which announced late yesterday that it has signed an agreement to acquire 100% of U.S. energy and agriculture information services provider. The acquisition represents an all-cash purchase of DTN for a total enterprise value of $445 million (U.S.), to be financed through a combination of fully funded senior indebtedness and the issuance of common equity. The transaction is expected to close in fourth-quarter 2008 and is subject to customary regulatory and shareholder approvals.
Launched in 1984, [image-nocss] DTN is a leading business information services provider delivering critical data to its more than 700,000 subscribers. It focuses on delivering high-value-added proprietary content to key decision-makers across the markets it serves, including the agricultural, energy and environmental industries. With the addition of DTN, Telvent acquires leading market positions and brands, an extensive library of proprietary content and solutions and a robust real-time data delivery platform.
DTN expects 2008 revenues to be approximately $180 million, with more than 90% of sales derived from subscription-based services.
Omaha, Neb.-based DTN's management team will continue to operate the company. With approximately 700 employees, it will raise the Telvent headcount to more than 6,000 worldwide, nearly 2,000 of which will be based in North America.
Manuel Sanchez, Telvent's chairman and CEO, said, "We see strong synergies between the two companies that will result in significant global growth opportunities, by introducing a new information technology delivery model, as well as adding valuable products and solutions to our current portfolio of customers worldwide. These value-added services and solutions are expected to result in more recurrent revenues and improved operating margins for Telvent. Moreover, the combined debt and equity financing of this transaction signals the support of Telvent's overall strategy by the financial community, which is remarkable under the existing challenging market conditions."
Robert Gordon, CEO of DTN, said the deal will allow DTN "to develop a long-term plan headed to better serve our customers with the information and systems that they need to make day-to-day critical decisions. We see many opportunities to integrate our services and achieve extensive new growth on a global scale, while allowing our professionals to develop their careers in a solid global company."
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