Exchange group NYSE Euronext has struck a definitive agreement to buy trading solutions firm NYFIX through its NYSE Technologies trading technology subsidiary.
The acquisition is an all-cash deal for $1.675 per share of common stock – which values the company at $144 million, including preferred stock consideration – and is expected to close in the fourth quarter of this year. The price represents a 95% premium over NYFIX’s Wednesday closing price on Nasdaq.
Once the purchase has been finalised, NYSE Technologies will assume control of NYFIX’s FIX software business and NYFIX Marketplace, a global community of over 1,000 trading counterparties that has access to NYFIX’s connectivity and other trading services.
NYSE Euronext has also said it will explore various alternatives for NYFIX’s transactions services business, including its Millennium and Euro Millennium dark pool.
“NYFIX customers will benefit greatly through the combination of two of the industry’s leading trading communities, creating a global transaction marketplace connecting buy-side and sell-side, as well as from the strength of the NYSE Euronext platform and global brand,” said NYFIX CEO Howard Edelstein, in a statement.
Stanley Young, CEO of NYSE Technologies and co-CIO, NYSE Euronext, is expected to assume responsibility for the NYFIX business, while Bob Moitoso will continue to lead the NYFIX FIX business. Edelstein, who has been at the firm since September 2006, will stay on at NYFIX until the transaction is completed.
“NYFIX is a natural extension of our connectivity business and fits nicely into our SFTI Integrated Partner Solutions, which currently enables hundreds of technology providers to offer value added products and services to participating firms,” commented Young. “The synergies will be particularly apparent to the pre-trade buy- and sell-side communities, which will benefit from a broad combination of technology assets and connections for efficient end-to-end transaction processing.”