Thomson Reuters acquires FXall (FX Alliance) for $625 million

FXall, the leading independent global provider of electronic foreign exchange trading solutions, lately announced record total average daily volume for June 2012 and the second quarter of 2012 in both Relationship and Active Trading. Total average daily volume in June was a record $98.6 billion, a 10% increase from both the previous month and from June 2011. Average daily volume in June for Relationship Trading and Active Trading were both records at $75.7 billion and $22.9 billion, respectively.

Acquisition price of $22 gives FXAll a 40% premium over its latest closing price of $15.70 thus valuing the company at about $625 million.

NEW YORK, July 9, 2012 – Thomson Reuters (TSX / NYSE: TRI), the world’s leading source of intelligent information for businesses and professionals, has entered into a definitive agreement to acquire 100% of the shares of FXall for $22 per share in cash. FXall (NYSE:FX), is the leading independent global provider of electronic foreign exchange trading solutions to corporations and asset managers. Under the agreement, Thomson Reuters will launch a tender offer, which is subject to standard regulatory approvals, for the acquisition in the coming days. The FXall Board has unanimously resolved to recommend that all shareholders tender their shares into the offer.

Technology Crossover Ventures, FXall’s largest shareholder, Phil Weisberg, chairman and chief executive officer and John Cooley, chief financial officer, who collectively own approximately 32.5% of FXall’s outstanding shares, have each agreed to tender their shares into the offer (subject to certain terms and conditions).

This transaction brings together two leading companies in their respective segments of the dynamic foreign exchange marketplace, one of the largest and most liquid asset classes. FXall and Thomson Reuters have complementary customer bases and long standing relationships with bank Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term providers.

Thomson Reuters is a key provider of access to market liquidity and workflow solutions to the inter-bank electronic FX markets. Participants in the FX market use Thomson Reuters to access content and pre-trade Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term, connect to their counterparties, find liquidity and trade in regulatory compliant and secure environments.

FXall’s leading trading and workflow processes are used worldwide by over 1,300 institutional clients including asset managers, corporations, banks, broker-dealers and hedge funds.

“Thomson Reuters and FXall have established leading positions in complementary aspects of electronic FX trading,” said Abel Clark, managing director, Marketplaces, Thomson Reuters. “This combination will enable us to provide our customers with integrated management of trades though the entire lifecycle, delivering the benefits of a more streamlined trading process and more efficient execution.”

“FXall will now have a bigger stage from which to drive greater innovation and growth, with access to Thomson Reuters global reach, standing in the FX community and focus on client solutions,” said Phil Weisberg, chairman and chief executive officer, FXall. “The combined platform allows us to deliver greater value to our clients and employees, building upon the foundation that we have established over the past twelve years. In addition, we believe this is a compelling transaction for our shareholders.”

Thomson Reuters expects the acquisition to close in the third quarter. FXall remains fully committed to ensuring a seamless transition and continued quality of service to its customers.

In connection with the transaction, Barclays is acting as financial advisor to Thomson Reuters and J.P. Morgan is acting as financial advisor to FXall.