The IT company Telvent has signed an agreement to acquire 100 percent of U.S.-based business information services provider, DTN Holding Company, headquartered in Omaha, Neb. The acquisition is an all-cash purchase of DTN for a total value of $445 million U.S. dollars (approximately 310 million Euros), to be financed through a combination of fully funded senior indebtedness and the issuance of common equity. The transaction is expected to close by year's end and is subject to regulatory and shareholder approvals.

DTN began in 1984 as a daily, electronic business information services provider. It has more than 700,000 subscribers, and focuses on agricultural, energy and environmental industries. DTN officials expect 2008 revenues to reach about $180 million, with more than 90 percent of sales derived from subscription-based services.

DTN's management team will continue to operate DTN. With approximately 700 employees, DTN will raise the Telvent global workforce to more than 6,000, of which about 2,000 will be based in North America.

Telvent officials point to the DTN acquisition as another strategic step in fulfilling its vision to help build a sustainable world, by adding an important new segment -- agriculture -- and by strengthening its existing energy, transportation and environment segments. 

"With this acquisition, Telvent reinforces not only the amount of critical information that it will be able to offer to its customers, but also the alternatives on how to access that information," said Telvent's news release.

“We are extremely excited about the acquisition of DTN because of its perfect fit with Telvent´s strategy,” says Manuel Sanchez, Telvent’s chairman and chief executive officer.  “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.”

Robert Gordon, DTN's chief executive officer, adds, “We are thrilled about the future with Telvent, which will allow us to develop a long-term plan 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.”.

Source: Telvent