Bridge Information Systems

Bridge Information Systems was a financial news and data provider that was acquired by Reuters Group in September 2001.[1]

History

The origins of Bridge date to 1974, when the original company was founded in St. Louis by investment analysts, including principal founder Charles A. Lebens, who thought that the development of new time-sensitive investments and financial industry deregulation would create a market for up-to-date financial information.[2] In March 1995, the company was acquired by private equity firm Welsh, Carson, Anderson & Stowe.[2][3] "Global Financial Information Corp." was the entity formed from Bridge and several other companies combined by Welsh, but the entire concern named "Bridge Information Systems" in September 1996.[4] It also moved its headquarters to New York.[5]

Bridge's acquisition of ten companies starting in 1996 under new CEO Tom Wendel, starting with Knight Ridder Financial News for $275 million,[6] created significant debt burdens for the company.[7] Bridge also bought the Telerate unit of Dow Jones & Company in 1998 in return for $150 million of preferred stock.[8][9]

As of May 2000 the company had 5,000 employees (a ten-fold growth from five years prior); half were located in the United States, and six hundred reporters were spread over 100 countries. One thousand employees were located at the company's headquarters in New York, and 800 were in St. Louis (its original headquarters).[2]

Unable to meet its ongoing debt obligations, Bridge filed for bankruptcy in February 2001.[8] The purchase of the company by Reuters was finalized by the end of September.

References

  1. ↑ (9 April 2001). Reuters eyes Bridge, CNN Money
  2. 1 2 3 Kipp, Kevin (May 2000). Informing Investors, St. Louis Commerce Magazine
  3. ↑ (17 March 1995). BRIDGE INFORMATION SYSTEMS EXECUTES AGREEMENT FOR ACQUISITION BY WELSH, CARSON, ANDERSON & STOWE, PRNewswire (press release)
  4. ↑ (27 September 1996). GFIC reshuffles; becomes major threat to brokerage industry, Electronic Information Report
  5. ↑ Gallagher, Jim. (13 September 1999). You may never have heard of Bridge Information Systems, but you soon will, St. Louis Post-Dispatch
  6. ↑ (4 August 1996). The Week in Review, St. Louis Business Journal
  7. ↑ Manning, Margie (4 February 2001). Bankruptcy considered option for Bridge, St. Louis Business Journal
  8. 1 2 Zuckerman, George. (16 February 2001). Bridge Information Systems Files For Bankruptcy-Law Protection, The Wall Street Journal
  9. ↑ Fabrikant, Geraldine (18 March 1998). Bridge to Pay $510 Million For Dow Jones Data Business, The New York Times
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