Thomson Reuters has agreed to acquire electronic foreign exchange trading solution provider FXall for $625 million at $22 per share in cash.
Thomson Reuters will launch a tender offer, which is subject to standard regulatory approvals, for the acquisition in the coming days.
The FXall board is unanimously recommending to shareholders to tender their shares into the offer. So far, 32.5% of shares have already been committed by Technology Crossover Ventures, FXalls largest shareholder, along with Phil Weisberg, chairman and chief executive officer of FXall, and John Cooley, CFO.
The two firms said in a statement that they have complementary customer bases and long-standing relationships with bank liquidity providers. Thomson Reuters provides access to market liquidity and workflow solutions to the inter-bank electronic FX markets, while FXalls trading and workflow processes are used worldwide by more than 1,300 institutional clients including asset managers, corporations, banks, broker-dealers and hedge funds.
Thomson Reuters and FXall have established leading positions in complementary aspects of electronic FX trading, says Abel Clark, managing director, Marketplaces, Thomson Reuters. This combination will enable us to provide our customers with integrated management of trades though the entire lifecycle, delivering the benefits of a more streamlined trading process and more efficient execution.
FXalls Weisberg adds: FXall will now have a bigger stage from which to drive greater innovation and growth, with access to Thomson Reuters global reach, standing in the FX community and focus on client solutions. The combined platform allows us to deliver greater value to our clients and employees, building upon the foundation that we have established over the past twelve years. In addition, we believe this is a compelling transaction for our shareholders.
Thomson Reuters expects the acquisition to close in the third quarter. FXall says it expects as seamless transition for customers.
(CG)