IntercontinentalExchange (ICE), leading operator of regulated futures exchanges, will buy NYSE Euronext, the parent of the New York Stock Exchnage in $8.2 billion deal that will end the independence of the 220-year-old Wall Street icon.
ICE would acquire NYSE Euronext for $33.12 per share in stock and cash, combining two leading exchange groups to create a premier global exchange operator diversified across markets including agricultural and energy commodities, credit derivatives, equities and equity derivatives, foreign exchange and interest rates.
Under the terms of the agreement, approved unanimously by the boards of both companies, the mix of the $8.2 billion of merger consideration being paid by ICE is approximately 67% shares and 33% cash.
The transaction value of $33.12 represents a 37.7% premium over NYSE Euronext’s closing share price on December 19.
"The board of NYSE Euronext carefully considered a range of strategic alternatives and concluded that ICE is the ideal partner for NYSE Euronext in an evolving market landscape," Chairman of the Board of NYSE Euronext Jan-Michiel Hessels said.
ICE said it would look at selling Euronext, NYSE's European stock market business, in an initial public offering after the deal closes.