Business News

The Dolan Company Acquires DataStream Content Solutions

Wednesday 01. December 2010 - The Dolan Company (NYSE:DM), a leading provider of services and business information to professionals in law, finance and real estate, said today it acquired DataStream Content Solutions, LLC, a leading provider of federal legislative and regulatory data and advanced content management systems to information businesses, publishers and governments.

DataStream’s proprietary processes and technology transform highly complex and unstructured data into valuable products and services for its business and government clients. It specializes in applying XML markup language to convert complex and unstructured data into “smarter” forms, allowing flexible queries and dynamic database updates.
DataStream’s proprietary business lines include Legislative Impact and Regulatory Impact, data management technologies which simplify searches of vast federal databases and are licensed to business clients and to the U.S. House of Representatives Office of Legislative Counsel. The company also offers other data management, conversion and analytic tools and services. Its subsidiary Potomac Publishing was included in the transaction.
Its target markets have been government, legislative and regulatory sectors.
The Dolan Company Chairman, President and Chief Executive Officer James P. Dolan said that DataStream will become part of The Dolan Company’s Business Information Division. “DataStream’s successful subscription-based model is a good example of how we plan to grow this part of The Dolan Company in the future,” Dolan said.
DataStream will continue to be run by its founder and president, Mark Anstey, and its chief information architect, Ed Schulke. Both will report to The Dolan Company’s Business Information Division Executive Vice President Mark Stodder. DataStream will remain in its College Park, Maryland, offices, Stodder said.
“We are very pleased to be joining The Dolan Company,” said Anstey. “It’s an exciting fit between our technological approach to government information and Dolan’s ability to market high-value business information and intelligence.”
The Dolan Company said the transaction would not affect its previous 2010 financial guidance. Management said it believes that DataStream will be modestly accretive to 2011 financial results on a cash earnings basis and effectively neutral to 2011 financial results on a net income basis.
The Dolan Company’s Business Information Division publishes business journals, court and commercial media and other highly-focused information products and services, operates web sites and produces events for targeted legal and professional audiences in 21 geographic markets across the United States. The Company’s Professional Services Division provides specialized outsourced services to the legal profession through three subsidiaries. NDeX is a leading provider of mortgage default processing services in the United States. DiscoverReady provides outsourced discovery management and document review services to major companies and their law firms. Counsel Press is the nation’s largest provider of appellate services to the legal community.
Non-GAAP Financial Measure: Cash earnings, a non-GAAP financial measure, is used in this press release. Cash earnings is defined as GAAP net income attributable to The Dolan Company adjusted for the impact of the following: non-cash expenses, including non-cash interest income or expense related to the changes in the fair value of interest rate swaps, charges for stock options and restricted stock granted, fair value adjustments on earnouts recorded in connection with acquisitions, and amortization; non-recurring items of income or expense; and an adjustment to income tax expense related to the above reconciling items at the appropriate then-in-effect tax rate.