ICE to acquire financial market data provider IDC in $5.2bn deal


Intercontinental Exchange Inc (NYSE:ICE), an international network of exchanges and clearing houses, has just announced that it has reached a definitive agreement to acquire financial market data provider Interactive Data Corporation (IDC).

ICE is acquiring the company from technology investing firm Silver Lake and private equity firm Warburg Pincus.

The deal is valued at approximately $5.2 billion, including $3.65 billion in cash and $1.55 billion in ICE common stock. The combined entity will offer customers efficiencies in accessing data on an integrated platform while seeking to respond to the increasing demand for data, analysis, valuation and connectivity worldwide.

“This transaction furthers our expansion into meeting the financial information needs of our market participants globally. With our diverse markets across virtually all asset classes, IDC will enable us to address more growth opportunities by leveraging the distribution and reach of our complementary global platforms for trading, clearing and data on a combined basis,” said ICE Chairman and CEO Jeffrey C. Sprecher.

“With IDC as the cornerstone in the next phase of extending our services, we will build on our track record of solid execution on integration and innovation by focusing on the needs of our customers in the evolving data services marketplace.”

idc_logo“Today’s announcement marks the next step in an exciting journey for IDC,” said Stephen Daffron, Chief Executive Officer of IDC. “With ICE, we have the long-term capital, strategic support and collective set of relationships to further grow our company and evolve our platform in the rapidly-changing capital markets landscape. We have enjoyed our partnership with Silver Lake and Warburg Pincus and thank them for their contributions to our success, as well as for their leadership in several strategic and technological initiatives that strengthened the company’s growth outlook.”

“It has been our privilege to partner with IDC,” said Mike Bingle, Managing Partner of Silver Lake and Jim Neary, Managing Director and a member of the Executive Management Group of Warburg Pincus. “Since our investment in 2010, the company has laid the foundation for long-term growth, by launching a state-of-the-art technology platform, developing innovative new products such as its cutting-edge real-time pricing solution and maintaining an unwavering focus on value for its clients. IDC is thrilled about its future with ICE, and its continued leadership in financial data services.”

Under the terms of the agreement, which has gained the approval of the Boards of both companies, the transaction is valued at $5.2 billion, based on the 10-day volume weighted average price of ICE’s stock on October 23, 2015. IDC shareholders will receive consideration of $3.65 billion in cash and $1.55 billion in Intercontinental Exchange common shares. The aggregate number of ICE common shares offered is 6.5 million shares, and up to 2.2 million additional Intercontinental Exchange common shares based on a sliding scale from $179.07 to $238.76 in the event that ICE’s weighted average stock price over a specified period leading up to closing is less than $238.76. The mix of merger consideration being paid by ICE is approximately 70% in cash and 30% in shares.

Additional transaction highlights include:

  • The transaction is expected to close by the end of 2015, subject to applicable regulatory approvals.
  • Last twelve months (“LTM”) revenues for IDC are expected to be $945 million and LTM adjusted EBITDA was $378 million.
  • For the third quarter of 2015, IDC revenues are expected to be $238 million and adjusted EBITDA was $992 million.

To view the official announcement about the deal, click here.

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ICE to acquire financial market data provider IDC in $5.2bn deal

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