GlobalNetFinancial.com Inc. (Nasdaq: GLBN) fell 2 7/16 to 10 3/4 Thursday after the Internet financial services company announced plans to acquire Telescan Inc. (Nasdaq: TSCN) in a stock swap.
Each Telescan share will be exchanged for half a share of GlobalNet, valuing the merger at about $332 million. Telescan rose 1/8 to 5 1/8 Thursday. The companies said the combination will result in a “vertically integrated, world-class, global B2B and B2C ‘clicks-and-mortar’ money and finance Internet company.”
Both companies’ boards have approved the merger, which is still subject to shareholder approval and other conditions. William D. Savoy, president of Vulcan Ventures Inc. and a Telescan board member, will become chairman of the new GlobalNetFinancial. GlobalNet’s current chairman and chief executive, Stanley Hollander, will be vice chairman.
GlobalNet, an international financial portal, has business-to-business (B2B) and business-to-consumer (B2C) operations, mainly focusing on Europe. Telescan is a U.S.-based B2B company, though it has a consumer business, InvesTools. GlobalNet said it can use Telescan’s experience in Web development and hosting, as well as financial analytics, to strengthen its presence in Europe.
GlobalNet is headquartered in Santa Monica, California, with offices in London, while Telescan is based in Houston, Texas. The new company will be headquartered in New York and London, the companies said.