Intercontinental Exchange Pays $1 Billion For The New York Board Of Trade

The Intercontinental Exchange is to acquire the New York Board of Trade (NYBOT), the world's leading soft commodity exchange, for consideration of approximately $1 billion. The consideration consists of 10.297 million shares of ICE common stock and $400 million in

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The Intercontinental Exchange is to acquire the New York Board of Trade (NYBOT), the world’s leading soft commodity exchange, for consideration of approximately $1 billion.

The consideration consists of 10.297 million shares of ICE common stock and $400 million in cash. Upon consummation, NYBOT will become a wholly-owned subsidiary of ICE.

Prior to consummation of the merger, ICE has agreed to make its widely distributed commodity trading platform available to NYBOT on reasonable commercial terms for the electronic trading of its products. Today, thousands of commodity market participants in 44 jurisdictions rely on ICE’s liquid electronic markets to trade contracts on crude oil and refined products, natural gas and power.

“The combination of two global and rapidly growing commodity marketplaces, together with a highly respected clearing house, allows us to expand ICE’s offerings for market participants, as well as create long-term shareholder value,” says ICE’s Chairman and CEO Jeffrey C. Sprecher. “We believe NYBOT’s strong heritage, diverse range of products and rapidly growing markets, combined with ICE’s proven innovation, global reach and ability to successfully integrate acquisitions, will create a premier global derivatives exchange. We look forward to working together with the floor community to expand NYBOT’s product offering and customer base.”

“It was essential for our future growth to partner with a rapidly expanding exchange such as ICE,” adds C. Harry Falk, the NYBOT President and CEO. “While we considered a number of qualified potential partners, we feel this agreement with ICE is the best fit for our exchange and our long-term goals. This merger provides our unique traditional markets the resources necessary to provide greater access and a higher level of service to our global users. It will allow us to continue using open-outcry trading, while providing a state-of-the-art electronic trading capability, thus giving our market participants a choice in how they wish to trade.”

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