ICE to acquire NYSE Euronext in $8.2 billion deal

New York: IntercontinentalExchange (ICE), leading operator of regulated futures exchanges, will buy NYSE Euronext, the parent of the New York Stock Exchange in an 8.2 billion dollar deal that will end the independence of the 220-year-old Wall Street icon.

IntercontinentalExchange would acquire NYSE Euronext for 33.12 dollars per share in stock and cash, combining two leading exchange groups to create a premier global exchange operator diversified across markets including agricultural and energy commodities, credit derivatives, equities and equity derivatives, foreign exchange and interest rates.

Under the terms of the agreement, approved unanimously by the Boards of both companies, the mix of the 8.2 billion dollars of merger consideration being paid by ICE is approximately 67 percent shares and 33 percent cash.

The transaction value of 33.12 dollars represents a 37.7 percent premium over NYSE Euronext’s closing share price on December 19.

"The Board of NYSE Euronext carefully considered a range of strategic alternatives and concluded that ICE is the ideal partner for NYSE Euronext in an evolving market landscape," Chairman of the Board of NYSE Euronext Jan-Michiel Hessels said.

ICE said it would look at selling Euronext, NYSE's European stock market business, in an initial public offering after the deal closes.

NYSE Euronext shareholders would own approximately 36 percent of ICE shares post-transaction, which is expected to close in the second half 2013, subject to regulatory approvals in Europe and the US.

The new entity would have dual headquarters in Atlanta and New York.

ICE said the New York headquarters would be located in the Wall Street building, home to the iconic trading floor.

ICE will also open a new midtown Manhattan office in June 2013.

ICE Chairman and CEO Jeffrey Sprecher would continue as Chairman and CEO of the combined company.

Four members of the NYSE Euronext Board of Directors would be added to the ICE Board of Directors which would be expanded to 15 members.

"Our transaction is responsive to the evolution of market infrastructure Thursday and offers a range of growth opportunities, while enhancing competition in US and European markets and broadening our ability to address new markets and offer innovative products and services on a global platform," Sprecher said.

PTI