NASDAQ acquired Instinet Group Incorporated and sold Instinet’s Institutional Broker division to Silver Lake Partners, making good on an announcement made in April.
NASDAQ’s acquisition of INET is a deal that will create a fast, high performing, low-cost single platform for trading US securities. The acquisition is meant to provide NASDAQ with a technologically better trading platform that will enhance NASDAQ’s ability to compete with US and international market centers.
“This transaction is a key part of NASDAQ’s growth plan to provide the most liquid and efficient market for global equities, and to be the number one market for trading stocks,” said Bob Greifeld, president and chief executive officer of NASDAQ. “With increased order interaction in both NASDAQ and exchange-listed securities — combined with a rising understanding among public companies about the importance of market quality– we will also improve our ability to attract listings.”
In connection with the closing of NASDAQ’s acquisition of Instinet Group Incorporated, Instinet’s stockholders will receive approximately $5.0881 per share. In August of this year, Instinet stockholders were also paid a dividend of $0.32 per common share, based upon the net after-tax proceeds of the Instinet’s sale of Lynch, Jones & Ryan, Inc. As a result of these transactions, NASDAQ now owns INET ECN.
NASDAQ expects to transition to the INET trading platform within 12 months.