IntercontinentalExchange (ICE), the electronic energy marketplace, and the New York Board of Trade (NYBOT), the soft commodity exchange, say that their merger transaction is complete.
As of the closing of the merger, NYBOT has become a wholly-owned subsidiary of ICE and is now part of a for-profit, publicly traded corporation for the first time in its history. The acquisition also provides ICE with a wholly-owned clearing house.
“This is a momentous day, and we are proud to welcome the NYBOT as a valued member of the ICE family,” says Jeffrey C. Sprecher, the Chairman and Chief Executive Officer of the ICE. “We are already beginning to leverage our strengths for the benefit of customers and shareholders, setting a new standard within the industry with our diverse product line of futures and over-the-counter offerings. Our commitment to growth, innovation and customer service will play out in continued product offerings and the enhancement of our world-class electronic trading and clearing platforms.”
“We believe that through this transaction, we have created a premier global commodity marketplace,” adds Frederick W. Schoenhut, the Chairman of the NYBOT. “Our longstanding commitment to serving the NYBOT’s constituencies is reinforced with this move as we pave the way for our continued success as a part of a world-class marketplace. As a part of the ICE team, we believe we can make a strong contribution to the group, as well as benefit from ICE’s innovations in technology and products to serve a diverse global customer base.”
The transaction consideration comprised 10.297 million shares of ICE common stock and USD400 million in cash. The number of shares of ICE common stock issued pursuant to the merger agreement represents approximately 15 percent of the issued and outstanding share capital of ICE. Computershare Shareholder Services, Inc., as exchange agent, will deliver the applicable merger consideration to each NYBOT member by 29 January 2007, after the exchange agent has applied the proration mechanics and determined the allocations of merger consideration between ICE common stock and cash based on the NYBOT members’ completed transmittal materials.
Evercore Group L.L.C. served as the exclusive financial advisor to ICE on the transaction, and Brown Brothers Harriman & Co. served as the financial advisor to NYBOT on the transaction.