Atlanta-based Intercontinental Exchange Inc. (ICE) is buying London U.K.-based trading technology firm Trayport for US$650 million in stock.
The exchange announced on Monday that it has entered into a definitive agreement to acquire Trayport from global brokerage firm, BGC Partners. ICE says that the transaction will enable the exchange to provide new services to the over-the-counter (OTC) energy markets, including European power, natural gas and coal.
Trayport will provide access to a broader range of risk management and analytics services as the OTC markets evolve, ICE says in a statement. And, as energy markets in Asia continue to develop, ICE expects to extend the platform to support the development of these OTC markets.
The acquisition has been unanimously approved by the boards of both companies, and is expected to close in the first quarter of 2016, subject to the completion of closing conditions and receipt of applicable regulatory approvals.
“Consistent with our track record of bringing improvements to markets, we will invest in and enhance the Trayport offering based on evolving customer needs,” says Jeffrey Sprecher, ICE chairman and CEO.
“We are pleased to take the next step in a rapidly changing European OTC utility landscape with ICE’s stability and capacity to invest in our growth,” adds Elliott Piggott, CEO of Trayport. “Our customer-centric platform will continue to serve the needs of the utilities market as it evolves, and we look forward to completing the transaction and advancing into our next stage of growth.”