ICE to acquire two S&P Global Market Intelligence divisions

Operator of global exchanges and clearing houses Intercontinental Exchange Inc (NYSE:ICE) on Tuesday announced it is expanding its data and valuation business through the acquisition of two assets under the S&P Global Market Intelligence business unit, from McGraw Hill Financial Inc (NYSE:MHFI).

ICE has entered into a definitive agreement to acquire provider of fixed income evaluated pricing Standard & Poor’s Securities Evaluations, Inc. (SPSE) and provider of independent data for the over-the-counter (OTC) markets Credit Market Analysis (CMA).

When the transaction is completed, it will allow ICE to offer customers new data and valuation services. ICE can choose how to satisfy its payment of the purchase price at the close of the transaction – in cash or shares of ICE’s common stock. Further terms of the deal were not disclosed.

The transaction requires regulatory approvals.

ICE Chairman and CEO Jeffrey C. Sprecher, comments,

“With rising demand for independent data in the global fixed income and credit markets, this transaction will support the need for innovation and increased risk management and valuation services. We look forward to serving customers in these markets as they become more transparent, and as pricing becomes more accessible.”

Mike Chinn, President of S&P Global Market Intelligence, says,

“After a strategic review of our portfolio, we determined that we do not have critical mass in the area of securities pricing. Therefore, this choice is the right decision for MHFI and S&P Global Market Intelligence. ICE is positioned to expand coverage in derivatives and offer a multi-asset class, comprehensive source for pricing and reference data, so clients of SPSE and CMA will benefit as well. Once the transaction closes, we will work together with ICE to ensure a seamless transition.”

You can view the full announcement about the deal by clicking here.

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