ICE To Acquire NYSE

February 19, 2013

The New York Stock Exchange entered into an agreement to be acquired by the Atlanta-based IntercontinentalExchange in a cash and stock transaction that values the NYSE at $8.2 billion, the companies said in a Dec. 20 press release.

The transaction valued NYSE Euronext at $33 a share—a 37.7 premium over NYSE Euronext’s (NYSE: NYX) closing share price on Dec. 19, 2012. The transaction, which is expected to close in the second half of 2013, will leave NYSE Euronext shareholders with an ownership stake in the new company of about 36 percent.

The companies estimated about $450 million in “run rate expense synergies,” with the bulk of those coming in the second full year following the closing. They also estimated earnings “accretion” of more than 15 percent in the first year after closing.

It’s not the first time ICE has made a bid for NYSE. It tried unsuccessfully to acquire a piece of NYSE Euronext in a joint bid with the Nasdaq exchange in the spring of 2011. But the initiative fell apart a bit more than a month later after U.S. regulators, citing antitrust concerns, signaled they would reject the proposed transaction.

The companies noted that the 2013 second-half closing is subject to approvals by regulators in Europe and the United States and by shareholders.


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