NYSE Euronext to Acquire Nyfix
Acquisition will give the exchange new high-speed trading technology to offer members, including trading workstations, trade messaging software and the recently upgraded Millenium dark pools.
By Penny Crosman
August 27, 2009
NYSE Euronext announced today it will acquire, through its subsidiary NYSE Technologies, Nyfix, a provider of electronic trading services including trading workstations, trade messaging software, and trade messaging services, in an all-cash deal for $1.675 per share of common stock. The total value of the deal is approximately $144 million, including preferred stock consideration. The transaction is expected to close in the fourth quarter of 2009.
Among the crown jewels of Nyfix are its U.S. and European Millenium dark pools, which have recently been migrated to a new high-performance technology architecture the company calls HPX. Because of the new architecture, the U.S. dark pool is said to be capable of acknowledging client orders in fewer than three milliseconds.
Upon closing, the Nyfix Fix business, including Fix Software and the Nyfix Marketplace, will become part of the offerings provided by NYSE Technologies, the commercial technology division of NYSE Euronext. The Nyfix Marketplace is a FIX-based community where more than 1,000 global trading counterparties connect to one another via more than 9,000 FIX-based messaging channels. The integration of the FIX Software business and the Nyfix Marketplace complements NYSE Technologies' commercial technology products. NYSE Euronext will explore various alternatives for the Nyfix Transactions Services business, including its Millennium dark pool.
Nyfix CEO Howard Edelstein stated: "The agreement we have reached with NYSE Euronext represents substantial value for Nyfix shareholders. This is an all-cash deal at a premium to the current market for Nyfix shares. Nyfix customers will also 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."
Stanley Young, Chief Executive Officer of NYSE Technologies and co-CIO, NYSE Euronext, said: "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. 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."
Once the acquisition is complete, the NYFIX business will report to Mr. Young. Bob Moitoso will continue to lead the NYFIX FIX business. Mr. Edelstein will stay on through the close of the transaction. |
