Deutsche Boerse sells International Securities Exchange to NASDAQ for $1.1 billion

Deutsche Boerse AG (ETR:DB1) and Nasdaq Inc (NASDAQ:NDAQ) on Wednesday announced that they entered into an agreement regarding the sale of International Securities Exchange Holdings, Inc. (ISE), operator of three US equity options exchanges, and ISE’s holding company U.S. Exchange Holdings, Inc. to Nasdaq.

The value of the deal is $1.1 billion in cash. Deutsche Boerse retains its ownership interest in Bats Global Markets, Inc. and in Digital Asset Holdings LLC.

At the time of the acquisition ISE was allocated to the Eurex segment from a balance sheet perspective. With the divestiture, the goodwill of the Eurex segment will only reduce partially, so Deutsche Boerse expects a high triple-digit million euro disposal gain at the group level.

Carsten Kengeter, Chief Executive Officer of Deutsche Börse AG, said:

“We are pursuing the goal to become the number one or two player in every business in which we operate. This goal requires an active management of our business portfolio. In areas where we are not able to meet this goal, we are evaluating other options. ISE, purchased in 2007 before the financial crisis, is a highly attractive asset that has excellent prospects to develop under the ownership of an US exchange.”

“We greatly value the contributions that ISE has made to the Group over the past eight years. They proved themselves to be a highly qualified management team, serial innovators, and developers of outstanding technology during an extremely challenging time in a highly competitive environment.”

The completion of the transaction, subject to regulatory approvals, is anticipated in the second half of 2016.

For the official announcement from Deutsche Boerse, click here.

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