The IntercontinentalExchange Group, Inc. (ICE) closed its deal for the NYSE Euronext Wenesday, in an US$11 billion cash and stock deal.
The combined company, which has a market capitalization of $23 billion, operates 16 global exchanges and five central clearing houses. The ICE and NYSE Euronext businesses will continue to operate under their respective brand names. The company is planning to spin-off the Euronext group of European exchanges into a stand-alone entity some time next year, subject to market conditions and regulatory approvals.
ICE’s CEO, Jeffrey Sprecher, will serve as chairman and CEO of the firm, with the NYSE’s Duncan Niederauer becoming president of ICE and CEO of the NYSE.
Upon closing the acquisition, IntercontinentalExchange, Inc. and NYSE Euronext both became wholly owned subsidiaries of IntercontinentalExchange Group, Inc., which will be the publicly-traded company. Four NYSE directors have also joined the board of the parent company, which will be dually-headquartered in Atlanta and New York.
“This is a game changing transaction,” said Sprecher . “ICE now leads in terms of the breadth and depth of services, best-in-class technology, and access to markets and capital. We have significant opportunities ahead both to grow and to make the business more efficient and competitive. Our team will continue to keep our customers front and center on everything we do, while bringing new products to market in real time. We look forward to unlocking value together both for customers and shareholders.”
“This is a great strategic fit for both companies. We now have a stronger and more diversified business model, which leverages the iconic NYSE Euronext brand, our leadership in listings, equity options and interest rate markets with ICE’s attractive portfolio of markets, clearing houses and technology for the global derivatives markets,” added Niederauer.
ICE’s lead financial advisor is Morgan Stanley; and it received additional financial advice from BMO Capital Markets Corp., ABN AMRO Bank N.V., BofA Merrill Lynch, Broadhaven Capital Partners, JPMorgan, Lazard, Societe Generale Corporate & Investment Banking, and Wells Fargo Securities, LLC.