Today’s Headlines 6/27/2011
- Boeing 787 starts last test phase
- Supreme Court keeps Sears class-action case alive
- Chicago PMI parent finds buyer in Deutsche Börse
- Groupon speeds up rollout of hyperlocal strategy
- Blagojevich trial: Found guilty on 17 counts
- Wal-Mart aims to foster minority-owned business with Chicago program
View All of Today’s News Headlines
— The suburban consulting firm that produces the widely followed Chicago Purchasing Managers’ Index, or Chicago PMI, has been purchased for less than $10 million by Deutsche Börse A.G.
Deutsche Börse, which operates the Frankfurt Stock Exchange, said in a release on Monday it bought Highland Park-based Kingsbury International Ltd. for a price “in the single-digit million range that includes a performance-related payment.”
Jack Bishop, 71, who has owned and led Kingsbury International since he founded it in 1983, declined to say how much was paid for the firm. He’ll remain as a consultant for Deutsche Börse for three years and earn a bonus payment if the company reaches certain performance benchmarks during that period.
He also approached Chicago exchanges CME Group Inc. and CBOE Holdings Inc. about their purchasing the firm. He declined further comment on any discussions with the exchanges. The two companies also declined to comment.
Deutsche Börse will disseminate the monthly economic indicator directly to its customers and expects to expand distribution to more clients and possibly add more categories, said Georg Gross, who leads the company’s front office data and analytics division.
“We want to increase the importance of this indicator,” Mr. Gross said in an interview. “We want to bring it to a broader audience.”
Mr. Bishop, who began working with the index in 1976, entered an arrangement with the non-profit Chicago arm of the Institute for Supply Management in 2004 to have the exclusive right to produce, distribute and market the index. At the same time, he increased the subscription fee for receiving the monthly report, splitting the revenue with the non-profit.
The monthly index, which is put out a day before a similar national index report, is based on a survey of corporate purchasing managers at Midwest companies, such as Boeing Co., McDonald’s Corp. and Caterpillar Inc., though it reflects their broader international business activity.
The Chicago affiliate of the Institute for Supply Management works with Kingsbury to develop the Chicago PMI. “ISM-Chicago welcomes Deutsche Börse as a partner in the future development of the Chicago Business Barometer as a leading indicator of U.S. economic activity,” incoming ISM-Chicago President Patricia Horvath said in the release.
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