NYSE Euronext Inc. (NYSE: NYX), is going to be sold to IntercontinentalExchange Inc. (NYSE: ICE) for $8 billion. If regulators approve the deal, the rival exchanges would merge and will have dual headquarters in Atlanta, Georgia and here in New York City. This comes after IntercontinentalExchange and Nasdaq OMX Group Inc. made a failed attempt to buy NYSE last year for $11 billion.
The deal has already been approved by the boards of both companies and is expected to close in the second quarter of 2013. Duncan Niederauer, the current NYSE CEO, will retain his current title and also be president of the newly combined company. Four members of the NYSE board will be come over to IntercontinentalExchange, increasing the total to 15 board members.
NYSE Shareholder Options:
- Cash Buyout – $33.12 per share
- Stock Trade – 1 NYX = 0.2581 ICE
- Combo – 1 NYX = $11.27 + 0.1703 ICE
Many exchanges have attempted to merge recently as competition in the market increases and commission sizes decrease. IntercontinentalExchange hopes the addition of the NYSE will help it cut costs and boost its earnings by more than 15% in the first year.
Jeffrey Sprecher, Chairman & CEO of IntercontinentalExchange, said “With a track record of growth and returns, clearing and M&A integration, we are well positioned to transform our combined companies into a premier global exchange operator that remains a leader in market evolution.”