EDGAR Online has merged with UBmatrix to creates a global, end-to-end provider of solutions for the creation, validation and analysis of XBRL (eXtensible Business Reporting Language) content. The stockholders of EDGAR Online approved the stock issuances contemplated by the merger agreement at the Company’s 2010 Annual Meeting on November 18, 2010 following previous approvals by the Board of Directors of the Company, and the Board of Directors and shareholders of UBmatrix. UBmatrix, one of the original inventors of the XBRL financial standard, will operate as a wholly-owned subsidiary of EDGAR Online, maintaining its existing brands.
The merger was an all equity transaction with the issuance by EDGAR Online of preferred and common shares equal to approximately 16% of the Company’s common stock on a fully diluted basis, subject to post-closing adjustments. In addition to the merger consideration, current UBmatrix shareholders have invested an additional $2 million in cash into the Company through the purchase of additional EDGAR Online preferred shares (convertible into 1,381,088 common shares of EDGAR Online as of January 28, 2015). Further details may be found in EDGAR Online’s definitive proxy statement filed with the SEC on October 20, 2010.
“I am extremely pleased that we have completed this strategic merger of two of the leading companies in XBRL today,” said John Connolly, Interim CEO of EDGAR Online. “UBmatrix has strong expertise and leadership in the software used by global regulators—including the U.S. Securities and Exchange Commission through its contract with Keane Federal Systems—as well as by major corporations through its enterprise software partners such as Oracle and SAP. UBmatrix’s products are great complements to our existing filing creation services and data products that will enable us to efficiently expand our XBRL footprint, take advantage of new partnerships, customers and efficiencies, and capitalize on a dynamic and growing market.”
EDGAR Online noted that the users of and applications for XBRL are growing rapidly, driven in part by government regulations. As mandated by the SEC, in June 2011 more than 8,000 additional public, private and foreign companies will begin filing in XBRL, and beginning in January 2011 more than 8,000 mutual funds must file their risk/return summaries in XBRL.
The merger with UBmatrix marks a significant milestone in EDGAR Online’s transformation from a niche provider of U.S. SEC EDGAR documents into a leading provider of XBRL products and services that improve the flow of business information, and a business with diverse revenue streams that is well positioned to capitalize on the exploding XBRL market. The combined company will have the ability to serve customers with a comprehensive set of products and services, great depth of experience and a strong set of partners in the XBRL market.
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- EDGAR Online and UBmatrix to merge Posted on June 24, 2010