After receiving regulatory approvals in Europe, which caused a slight delay, IntercontinentalExchange Group, Inc. (ICE) has finalized the acquisition of NYSE Euronext for a total value of around $11 billion, creating by far the largest exchange, with a market capitalization of $23 billion.
As the parent company, ICE will be the only publicly-traded entity, but each will operate under their own brand names. The combined company will also maintain dual headquarters in Atlanta (ICE’s current home) and New York (NYSE’s current home). ICE will also keep NYSE’s trading floor in New York. However, the company is planning an IPO for Euronext in 2014, creating a stand-alone entity for the European group of exchanges.
In all, the combined company operates 16 global exchanges and five central clearing houses. The exchanges cover multiple asset classes including equities, bonds, interest rates, equity derivatives, credit derivatives, foreign exchange, energy, metals and agricultural commodities.
“This is a game changing transaction,” says ICE Chairman and CEO Jeffrey C. Sprecher . “ICE now leads in terms of the breadth and depth of services, best-in-class technology, and access to markets and capital. We have significant opportunities ahead both to grow and to make the business more efficient and competitive.”
Duncan Niederauer will still serve as the CEO of NYSE, and he will also now serve as president of ICE. Also, four members of the NYSE Euronext Board of Directors—Sylvain Hefes, Jan-Michiel Hessels , James McNulty and Robert Scott—will now serve on ICE’s Board, which has 14 members including these additions.
ICE Completes $11 Billion Acquisition of NYSE Euronext
After receiving regulatory approvals in Europe, which caused a slight delay, IntercontinentalExchange Group, Inc. (ICE) has finalized the acquisition of NYSE Euronext for a total value of around $11 billion, creating by far the largest exchange, with a market capitalization of $23 billion.