New York Stock Exchange Being Acquired by ICE
In major Wall Street news, NYSE Eurotext today announced a definitive agreement to be acquired by IntercontinentalExchange (“ICE”), a leading operator of global markets and clearing houses, in a stock-and-cash transaction.
The acquisition combines two leading exchange groups to create a global exchange operator diversified across markets including agricultural and energy commodities, credit derivatives, equities and equity derivatives, foreign exchange and interest rates. The combined company, with leading clearing capabilities, anticipates being well positioned to deliver efficiencies while serving customer demand for clearing and risk management globally.
Under the terms of the agreement, which was unanimously approved by the Boards of both companies, the transaction is currently valued at $33.12 per NYSE Euronext share, or a total of approximately $8.2 billion, based on the closing price of ICE’s stock on December 19, 2012.
NYSE Euronext shareholders will have the option to elect to receive consideration per NYSE Euronext share of (i) $33.12 in cash, (ii) 0.2581 IntercontinentalExchange common shares or (iii) a mix of $11.27 in cash plus 0.1703 ICE common shares, subject to a maximum cash consideration of approximately $2.7 billion and a maximum aggregate number of ICE common shares of approximately 42.5 million.
The overall mix of the $8.2 billion of merger consideration being paid by ICE is approximately 67% shares and 33% cash. The transaction value of $33.12 represents a 37.7% premium over NYSE Euronext’s closing share price on December 19, 2012.
Read the full press release about the NYSE Euronext / ICE merger.
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