Telescan Inc. pays more than $50 million for INVESTools' online newsletters.

INVESTools.com, with 13,000 subscribers and annualized revenue approaching $4 million, receives 300,000 visitors each month and provides more than 125,000 investors with a free weekly e-mail digest of recommendations called The IN VES Tools Advisory. The five-year-old company also provides subscribers with more than 30 investment newsletters, including Dan Sullivan's The Chartist, Dan Rowe's The Wall Street Digest, Al Frank's The Prudent Speculator, George Putnam's The Turnaround Letter, and David Fried's The Buyback Letter. INVESTools integrates these advisory services with brand name research providers such as Standard & Poor's, Morningstar, Market Guide, Baseline, and Zack's.

Houston-based Telescan Inc. is a leading provider of internet services, solutions for online technology and data retrieval tools. It develops and operates internet sites and major online networks serving the financial, publishing, entertainment and technology-transfer industries. Its Wall Street City supersite provides the most comprehensive suite of search tools, technical analysis and financial data on the internet, according to chairman and CEO David Brown.

Brown says, "Telescan's wallstreetcity.com currently attracts 17 million page views per month. Consistent with other acquisitions and the strategic investments we've made over the past year, we expect the addition of INVESTools to drive additional investors to both our site and those of our strategic partners, such as CNBC.com and GlobalNet Financial.com."

Telescan completed its acquisition of INVESTools Inc. last month for approximately 2.3 million shares of Telescan common stock, estimated to be worth more than $50 million. The transaction was structured as a pooling of interests. NationsBanc Montgomery Securities LLC served as Telescan's financial advisor, and California-based INVESTools was represented by Business Development Advisors of San Francisco.