Thomson Financial Networks To Emerge From Autex Systems, Technical Data Merger

International Thomson Organization is combining its AutEx Systems and Technical Data International units as part of a move to rationalize its delivery system and develop synergies within the International Financial Networks Company, industry sources say. The company that will emerge from the AutEx/Technical Data merger will be known as Thomson Financial Networks and is expected to be announced later this year. Thomson's goal of delivering InFiNet services through a single network is expected to yield numerous operating and marketing efficiencies.

There will be no need for management changes because AutEx and Technical Data already share the same management team. Last year, Andy Mills became president and Jeffrey P. Parker became chairman and chief executive of both AutEx and Technical Data. AutEx is based in Newton, Mass. and Technical Data is located in Boston.

AutEx's Trading Information System facilitates block trading of securities by electronically linking broker/dealers and institutional investors. Following the merger with Technical Data, TIS will be known as AutEx to retain brand name recognition built up over more than 20 years. AutEx's main competitor is Bridge Information Systems of St. Louis. But the Bridge Order Indication System is just one of many services that Bridge subscribers receive on the same terminal.

Technical Data electronically distributes financial information and offers PC-based software products to the investment community. Along with a group of brokers, it also owns and operates the First Call real-time equity research service. Thomson reportedly wanted to acquire MMS International, one of Technical Data's chief competitors, but lost out in a bidding war to McGraw-Hill Inc. (see brief.)

Officials at AutEx and Technical Data declined to comment on the merger between the two InFiNet companies. Other InFiNet properties include American Banker/Bond Buyer newspapers and CDA Investment Technologies of Rockville, Md.. InFiNet is also bankrolling a group of former E.F. Hutton & Co. executives who have formed ILX Systems Company. ILX plans to deliver real-time quotations to PCs at a lower cost than existing services requiring dedicated terminals. ILX's market data will be distributed along with other InFiNet services via a KU-Band satellite network.

The combination of AutEx's block trading system, First Call research and ILX's low-cost quotation service could make InFiNet more competitive with Bridge, not to mention market data heavyweights such as Citicorp subsidiary Quotron Systems Inc. and Reuters Holdings PLC, both of which are entering the real-time equity research business dominated by First Call.