Markit (Nasdaq: MRKT), a global provider of financial information services, just announced that it has agreed to acquire DealHub (Option Computers Ltd), a trade processing and trading services provider to the foreign exchange market, for an undisclosed sum.
The acquisition will enable Markit to offer a comprehensive solution for FX across venue connectivity, trading services, trade confirmation and management, clearing and regulatory reporting. It comes on the heels of the firm’s acquisition of CoreOne Technologies earlier this month, and is part of the major consolidation underway in the financial technology sector.
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It will also expand Markit’s customer base among DealHub’s clients which include global banks, regional banks, inter-dealer brokers, FX electronic trading venues and asset managers. The acquired company has approximately 55 people based primarily in London, with additional offices in New York and Singapore.
Brad Levy, Managing Director and Head of Markit’s Processing Division, commented: “DealHub is a great company and highly complementary to Markit’s growing FX processing business. This acquisition adds depth to our FX offering while bringing an exciting set of trading solutions to Markit. Connecting DealHub’s technology to our network will accelerate centralisation of FX trade processes, making it easier for customers to transact.”
Peter Kriskinans, Founder and Chief Executive Officer of DealHub, added: “We are excited about joining Markit since our businesses are so complementary. Markit’s scale and global reach will allow us to better support our customers and will also accelerate innovation and further development of our technology.”
The acquisition is expected to close in the third quarter of 2015. The transaction will be funded by a combination of cash and Markit’s revolving credit facility. Other financial terms of the transaction were not disclosed at the time.