IntercontinentalExchange (ICE), an electronic energy marketplace and soft commodity exchange, has announced that it has entered into an agreement to acquire the assets of Chatham Energy Partners (Chatham). The new business will be operated as a wholly-owned subsidiary of ICE that will be called Chatham Energy. Chatham is a brokerage firm that specialises in structuring and facilitating transactions in the over-the-counter (OTC) markets for energy options. Chatham's clients include commercial energy firms, utilities companies and financial institutions. The firm aims to support the execution of ICE's strategic plans to develop the leading electronic marketplace for the execution of OTC energy options.
"We are eager to leverage our electronic platform in the vast OTC energy options markets through the acquisition of Chatham. By bringing experienced options professionals in-house, we can more effectively execute our strategy to build our electronic options business," comments ICE chairman and CEO Jeffrey C. Sprecher. "Chatham's proven team will join our global OTC sales and marketing efforts as we work to bring the benefits of electronic trading, including speed, efficiency and transparency, to the OTC options markets," he adds.
ICE expects to complete its acquisition of Chatham during October and expand its electronic OTC options on natural gas during the fourth quarter of 2007. Terms of the transaction were not disclosed. The acquisition is not expected to be material to ICE's operating results during 2007.