And that’s a wrap…
Early on Thursday morning, IntercontinentalExchange (NYSE:ICE) announced that it had reached a definitive agreement to acquire NYSE Euronext (NYSE:NYX) for $33.12 per share in a stock and cash deal.
The acquisition will combine two leading exchanges to create a diversified, global exchange operator across different markets such as agricultural and energy commodities, credit derivatives, equities and equity derivatives, foreign exchange and interest rates. With its leading clearing capabilities, the combined company will be able to deliver efficiencies while serving customer demand for clearing and risk management globally, as noted in an ICE press release.?
The agreement’s terms, which had received unanimous approval by the Boards of both companies, has the transaction currently valued at $33.12 per NYSE Euronext share (approximately $8.2 billion).
This is based on ICE’s closing price on December 19, 2012.
The $8.2 billion can broken down to approximately 67% shares and 33% cash. The $33.12 transaction represented a 37.7% premium over NYSE Euronext’s closing share price on December 19, 2012.
After the transaction, NYSE Euronext shareholders will own approximately 36% of ICE shares post-transaction with the cash portion by?initiation of cash on hand and existing ICE credit facilities.
The deal is expected to close in 2013’s second half; it is subject to European and U.S. regulatory approvals along with shareholder approval from both companies.
Jeffrey C. Sprecher will continue as Chairman and CEO of the combined company and Scott A. Hill as CFO. Duncan L. Niederauer will be President of the combined company and CEO of NYSE Group. Four members of the NYSE Euronext Board of Directors will be added to the ICE Board of Directors; this will bring the number to 15 members.
Niederaruer said of the deal, “This transaction leverages the strength of our iconic brand and the value we have created in our global equity and derivatives franchises – positioning the business for solid long-term growth and development. We are bringing together two highly complementary businesses, creating an end-to-end multi-asset portfolio that will be strongly positioned to serve a global client base and capture current and future growth opportunities.”