Seeking Alpha To Acquire CressCap Investment Research

Seeking Alpha has announced a major acquisition of CressCap Investment Research, a move that will change the type of information investors can find on the news platform.  

What Happened

On Wednesday, Seeking Alpha announced it has acquired CressCap, a quantitative analytics and data platform. The terms of the deal were not initially disclosed.

Why It’s Important

Seeking Alpha’s deal with CressCap appears to be part of a strategy to open up the world of advanced quantitative analysis for the average retail investor.

Most Wall Street investment banks provide access to in-depth financial analysis to institutional clients only, leaving retail investors a step behind. CressCap is the latest step in Seeking Alpha's strategy of crowdsourcing financial market analysis and bringing a new level of transparency to Wall Street, the company said in the M&A announcement. 

CressCap founder and CEO Stephen Cress will be Seeking Alpha's new head of quant strategies. Seeking Alpha subscribers will now have access to the type of analysis that would have previously been both extremely difficult to find and cost-prohibitive for retail investors, Cress said in a statement. 

The merger of Seeking Alpha and CressCap is part of a larger M&A trend in the data industry, he said. 

“Brokerage firms, banks and investment research companies are learning that a major advantage of big data and statistical analysis is that the outcome of quantitative research is easy to measure, and the results can be displayed clearly through user-friendly graphics or ranking tables." 

What’s Next

Traders will be looking to see how SeekingAlpha’s offerings will change once the CressCap products and data are integrated. In addition, investors will be on the lookout for additional quantitative data buyout targets.

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