Intercontinental Exchange (NYSE:ICE), a global network of exchanges and clearing houses, has formalized its plans to acquire Interactive Data Corporation in a move valued at approximately $5.2 billion, according to an ICE statement.
Interactive Data Corporation is a comprehensive provider of financial market data, analytics, and trading solutions. The landmark acquisition will help ICE assimilate with Interactive Data’s financial data capabilities, which serves a variety of sectors, including mutual funds, banks, asset managements, hedge funds, and securities, among others.
Moreover, the acquisition will look to develop ICE’s global market data growth strategy via an expanded focus on markets. This will be especially true given advances in technology platforms and new data and valuation services, areas that Interactive Data has thrived in. The deal is worth approximately $5.2 billion, which includes $3.65 billion in cash and $1.55 billion in ICE common stock.
Both boards have already unanimously approved the acquisition, whose valuation was based on the 10-day volume weighted average price of ICE’s share price on October 23, 2015. The aggregate number of ICE common shares offered currently is 6.5 million shares, with up to 2.2 million additional Intercontinental Exchange common shares based on a sliding scale from $179.07 to $238.76.
More details are expected to be released during ICE’s Q3 2015 conference call on October 28, ahead of the US market open.
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The newly combined capabilities from both ICE and soon-to-be acquired Interactive Data, will feature a streamlined approach to accessing data across ICE’s multi-asset platform. Presently, ICE’s data business boasts coverage of nine sovereign asset classes across a total of eleven exchange and seven clearinghouses.
According to ICE Chairman and CEO Jeffrey C. Sprecher in a recent statement on the acquisition: “This transaction furthers our expansion into meeting the financial information needs of our market participants globally. With our diverse markets across virtually all asset classes, IDC will enable us to address more growth opportunities by leveraging the distribution and reach of our complementary global platforms for trading, clearing and data on a combined basis.”
“With IDC as the cornerstone in the next phase of extending our services, we will build on our track record of solid execution on integration and innovation by focusing on the needs of our customers in the evolving data services marketplace,” he added.
“Today’s announcement marks the next step in an exciting journey for IDC. With ICE, we have the long-term capital, strategic support and collective set of relationships to further grow our company and evolve our platform in the rapidly-changing capital markets landscape,” reiterated Stephen Daffron, Chief Executive Officer of IDC, in an accompanying statement.
“We have enjoyed our partnership with Silver Lake and Warburg Pincus and thank them for their contributions to our success, as well as for their leadership in several strategic and technological initiatives that strengthened the company’s growth outlook.”
At the time of writing, shares of ICE are trading in positive territory on the news, having settled at $250.01, up 0.44% Monday. Earlier today, share prices scored a new 52-week high of $254.91 during US trading.