FactSet Acquires LiquidityBook

Core Insights - FactSet announced the acquisition of LiquidityBook for a gross purchase price of $246.5 million in cash, aimed at enhancing its technology-forward order management (OMS) and investment book of record (IBOR) capabilities [1][5] Company Overview - LiquidityBook provides cloud-native trading solutions to hedge funds, asset and wealth management firms, and sell-side middle office clients, operating a proprietary FIX network that connects over 200 brokers and routes orders to more than 1,600 destinations across 80 markets globally [2][9] - Founded in 2005 and headquartered in New York, LiquidityBook has approximately 70 employees and offers a modular platform for the full trading life cycle, enabling multi-asset class portfolio, order, and execution management capabilities [4][9] Strategic Partnership - Over the past year, FactSet and LiquidityBook partnered to integrate LiquidityBook's OMS into the FactSet Workstation, linking various steps in the front office trade workflow, from security research to trade execution [3] - The acquisition is expected to accelerate FactSet's mission to connect the front office with the middle office, enhancing its ability to serve integrated workflow needs across the portfolio life cycle [3][4] Financial Implications - The acquisition closed on February 7, 2025, and was funded through borrowings under FactSet's existing revolving credit facility, with expectations of modest dilution to FactSet's fiscal 2025 GAAP and adjusted diluted EPS [5][6] Market Position - FactSet aims to streamline workflows across the entire portfolio life cycle, reducing clients' total cost of ownership and allowing them to focus on actionable investment decisions rather than navigating disparate platforms [4] - LiquidityBook's CEO emphasized the company's focus on developing a modular solution on scalable architecture to support sophisticated multi-asset trading workflows, positioning it as a disruptive force in the market for nearly 20 years [5][9]