InvesTools Inc., an investor education company based in Salt Lake City, said Thursday it has acquired Prophet.Net and Prophet Financial Systems, a software development company based in Palo Alto, Calif.

As part of the transaction, InvesTools acquired all of Prophet's stock for $7.9 million in cash.

Prophet made a profit in 2004, with revenue of more than $3 million. Tim Knight, Prophet's chief executive officer, president and founder, has entered into a two-year employment agreement with InvesTools as vice president of technology.

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