Exchange operator NYSE Euronext has signed a definitive agreement to buy Wombat Financial Software, a privately held provider of financial market data management solutions.
Under the terms of the agreement, NYSE Euronext will acquire 100% of Wombat for $200 million in cash, and will also create a retention pool for employees. NYSE Euronext expects the transaction to close early in the second quarter of 2008, and to be accretive to 2009 earnings.
The company plans to merge Wombat’s market data enterprise software and services with the NYSE TransactTools connectivity and messaging business. “By integrating Wombat’s sophisticated data platform with NYSE TransactTools’ connectivity and messaging infrastructure, we will be able to offer customers an end-to-end solution to access markets globally,” says Larry Leibowitz, head of global technology at NYSE Euronext.
Solutions will be delivered both as enterprise software products and managed services on the NYSE TransactTools Secure Financial Transaction Infrastructure network, ranging from hosting co-location for high-speed trading, direct market access connectivity and algorithmic execution, to new data products such as integrated and consolidated price feeds. NYSE Euronext believes this will reduce the cost and complexity associated with building and managing connectivity for electronic trading.