Eurex and International Securities Exchange (ISE) announced on Monday that they have signed a definitive agreement in which Eurex will acquire ISE for approximately $2.8 billion in cash, or $67.50 per share. The combination will be implemented by way of a merger and is subject to approval by the holders of a simple majority (50 percent plus one share) of ISE outstanding common stock at a shareholder meeting to be held as soon as practicable, receipt of regulatory approval by the U.S. Securities and Exchange Commission (SEC) and other closing conditions.
ISE's Board of Directors is recommending its shareholders to vote in favour of the transaction.
"This transaction further expands Deutsche Borse's position in the fast growing global derivatives markets," says Reto Francioni, CEO, Deutsche Borse, which owns Eurex. "The agreement is a strategic milestone for us that will fuel our strong growth prospects and create significant value for shareholders," he continues.
The transaction will create the largest transatlantic derivatives marketplace with "significant" USD and Euro product coverage spanning index, equity and long-term interest rate derivatives, says the ISE. The firm will continue to operate as a separate SEC-regulated entity in its current governance structure and use the ISE brand.
Andreas Preuss, Eurex CEO and member of the executive board of Deutsche Borse, comments, "The combination of ISE's leadership position in the U.S. equity options market with with Eurex's global position in Euro-dominated fixed income, index and equity derivatives will provide significant benefits for our customers. ISE and Eurex are partners with an excellent strategic fit."