San Mateo-based web services data provider Xignite is adding fundamental data and estimates from FactSet Research Systems to its suite of on-demand datasets, to provide clients with access to global company fundamental and financial data.
Xignite will make the fundamental data from FactSet available sometime before year-end, once it has finalized the APIs for accessing the data, as well as documentation and marketing materials, having begun working on integrating the data a few months ago.
The new datasets will complement existing North American fundamental data from Chicago-based data and investment research provider Morningstarâ”€acquired as a result of its 2007 purchase of UKbased fundamental data provider Hemscott (IMD, Jan. 4, 2008)â”€already available via Xignite. However, since the vendor's client base has grown worldwide and Xignite already provides access to global quotes and other data, the lack of matching global fundamental data was "the biggest gap in our offering," says Xignite chief executive Stephane Dubois.
The largest and most valuable portion of the data is FactSet's historical financial data, though the vendor will not carry every data point initially. "We don't necessarily need every data point available.... People pretty much use the same things. So we can limit it to the fields most commonly used," Dubois says.
Clients can continue to use the Morningstar data or can move to the FactSet over time, Dubois says, adding that because vendors use different data fields, "you can't just substitute one for another," so Xignite will offer both vendors' data to give customers "plenty of time" to assess both.
In fact, Xignite may move completely to offering FactSet's data if client demand shifts over time. And though the agreement currently only covers fundamental data, Dubois says he expects it to expand over time to cover other FactSet datasets, such as its global holdings data, which would complement the existing North American holdings datasets offered by Xignite.
Dubois says the agreement stems from a deal Xignite signed in summer 2013, when the vendor was competing for a contract against another data provider, where fundamental data became an important factor to winning the deal, and Xignite enlisted FactSet to provide additional content. "I think that made FactSet realize... that by leveraging our distribution channel, they could reach a broader range of customers," he says.
Dubois says pricing for the data is yet to be confirmed, but acknowledges that "it's not going to be cheap, because it's very valuable data." However, other cost-saving factors can make the data "more approachable," he says. "Because of our technology, we can eliminate a lot of the costs of onboarding this data, such as servers and databases... and we can also save money by enabling faster time to market," he adds.
Source: Waters Technology