Exciting opportunities on the horizon

In December 2016, FactSet announced the acquisition of Vermilion Software Limited

A global provider of integrated financial information, analytical applications, and industry leading service based in Norwalk, Connecticut, FactSet was founded in 1978 and has been publicly held since 1996. The company is dual listed on the New York Stock Exchange and the NASDAQ Stock Market under the symbol ‘FDS’.

Vermilion is an outstanding addition for FactSet as they strive to more holistically address the portfolio life cycle. Operating alone, Vermilion has developed compelling functionality to meet critical needs of the investment management community; in combination with FactSet’s core strengths and global commercial footprint, we believe we will better meet client needs going forward.

Beyond the strategic fit and opportunity, there is a clear cultural fit between the two organizations. Vermilion offers its clients a strong consultative approach and a focus on customer service, one of FactSet’s hallmarks.

FactSet

Relationship with Portfolio Publisher

FactSet has its own client reporting tool, known as Portfolio Publisher. There are a number of clear differences between the two offerings and each has its own distinct appeal.

  • Portfolio Publisher is a managed service. FactSet takes ownership of the data upload, calculations, creation of the documents and maintenance.
  • Vermilion is a workflow solution owned by the client. The client owns the entire process from data upload, data/commentary sign off, document generation and distribution.

Below is a brief comparative table, outlining the operational implications of these differences.

Vermilion Reporting Suite Portfolio Publisher
Client Business and IT Teams can own and manage multiple reporting processes. Client owns the process and platform. Hands off reporting services, freeing up valuable client time. Process is FactSet-owned.
Consistent reporting volume and finite number of date ranges (traditional monthly reporting such as factsheets). Optimized for data residing on or calculated by FactSet.
Workflow dashboard allows for live process management, monitoring and administration throughout the reporting process. Template creation and maintenance fully managed by FactSet.

Advantages of using FactSet and Vermilion

The combined FactSet-Vermilion solution will allow for seamless integration of data from FactSet to Vermilion’s DataMart, which drives the Vermilion Reporting Suite.

Client reporting is a rapidly growing area of the market as regulatory requirements rise and investors grow increasingly sophisticated. Data integration into the reporting process is often the largest bottleneck.

Automated analytic data feeds from FactSet to VRS reduce this bottleneck and the VRS workflow provides the necessary transparency into the reporting process. By removing the need for the client to own and broker the data from one system to another, we avoid the huge bottleneck this causes in reporting today and reduce the time to market for the reports.

Exciting opportunities

The synergies between the two firms are promising. The combination of VRS and Portfolio Publisher allows us to offer a product mix that we believe is unparalleled in the market.

Now that Vermilion is part of the much larger FactSet family, this will mean that in future we will have a much larger resource pool from which to draw, which can only benefit Vermilion’s clients. Of course, it will take a little time for our full integration into FactSet to complete but we are enthusiastic about the opportunities that the transaction has created.

About FactSet

As of August 31, 2016, FactSet has a market capitalization of $7.12 billion, which is up 9.5% over last year. The company currently has 43 office locations in 21 countries employing 8,093 individuals.

In March 2016, FactSet was ranked #89 on Fortune’s “100 Best Companies to Work For”. In addition, the company was awarded the Best Research and Analytics tool at the 2016 Systems in the City Awards, and the Best Overall Provider, Best Research Provider and Best Analytics Provider at the 2016 Inside Market Data Awards.

Since becoming a public company in 1996, FactSet has evolved from a US-centric software firm into a global company generating approximately a third of its revenues from clients outside the US.

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