NYSE Euronext has entered into a definitive agreement to acquire, through NYSE Technologies, its indirect, wholly-owned subsidiary, NYFIX, in an all-cash deal for $1.675 per share of common stock. The deal is approximately $144 million, including preferred stock consideration.
Once the acquisition is complete, the NYFIX business will report to Stanley Young, CEO of NYSE Technologies and co-CIO, NYSE Euronext. Bob Moitoso will continue to lead the NYFIX FIX business. Howard Edelstein, CEO of NYFIX, will stay on through the close of the transaction.
Mr. Edelstein said: “NYFIX customers will also benefit greatly through the combination of two of the industry’s leading trading communities, creating a global transaction marketplace connecting buy-side and sell-side, as well as from the strength of the NYSE Euronext platform and global brand.”
Mr. Young said: “NYFIX is a natural extension of our connectivity business and fits nicely into our SFTI Integrated Partner Solutions, which currently enables hundreds of technology providers to offer value added products and services to participating firms. The synergies will be particularly apparent to the pre-trade buy- and sell-side communities, which will benefit from a broad combination of technology assets and connections for efficient end-to-end transaction processing.”
The company has added that the NYSE Euronext, NYSE Technologies and NYFIX boards of directors have approved the acquisition, which is subject to approval by NYFIX shareholders and customary regulatory approvals. The transaction is expected to close in the fourth quarter of 2009.
