The company that operates the New York Stock Exchange will soon have a new owner as IntercontinentalExchange (ICE), a leading operator of global markets and clearing houses based in Atlanta, announced this morning that it had entered into a definitive agreement to to acquire NYSE Euronext. The $8.2 billion deal will be delivered in a cash and common shares mix, and is expected to close in the second half 2013, subject to regulatory approvals in Europe and the U.S. and approval by shareholders of both companies (the deal has been approved by the boards of both companies). The agreement comes after IntercontinentalExchange and Nasdaq OMX Group Inc. made a failed $11 billion bid to buy NYSE Euronext last year. Earlier this year, European regulators blocked Deutsche Boerse AG from buying NYSE Euronext, noted The Washington Post.
"Our transaction is responsive to the evolution of market infrastructure today and offers a range of growth opportunities, while enhancing competition in US and European markets and broadening our ability to address new markets and offer innovative products and services on a global platform," said ICE Chairman and CEO Jeffrey C. Sprecher. "We believe the combined company will be better positioned to compete and serve customers across a broad range of asset classes by uniting our global brands, expertise and infrastructure. With a track record of growth and returns, clearing and M&A integration, we are well positioned to transform our combined companies into a premier global exchange operator that remains a leader in market evolution."
"The Board of NYSE Euronext carefully considered a range of strategic alternatives and concluded that ICE is the ideal partner for NYSE Euronext in an evolving market landscape," said Jan-Michiel Hessels, Chairman of the Board of NYSE Euronext. "We look forward to working with ICE to complete this compelling, value-enhancing combination."
"This transaction leverages the strength of our iconic brand and the value we have created in our global equity and derivatives franchises — positioning the business for solid long-term growth and development," said Duncan L. Niederauer, CEO of NYSE Euronext. "We are bringing together two highly complementary businesses, creating an end-to-end multi-asset portfolio that will be strongly positioned to serve a global client base and capture current and future growth opportunities."
According to a CBS News report, there will be dual headquarters in New York and Atlanta and ICE will open an office in Manhattan. NYSE CEO Duncan Niederauer will become president of the combined company and CEO of NYSE Group.
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