The Nasdaq Stock Market, Inc (NASDAQ) has completed its acquisition of the INET ECN, which now provides the exchange with a superior trading platform.
Pursuant to the agreements announced in April of this year, NASDAQ acquired Instinet Group Incorporated and sold Instinet's Institutional Broker division to Silver Lake Partners. In connection with the closing of NASDAQ's acquisition of Instinet Group Incorporated, Instinet's stockholders will receive approximately USD 5.0881 per share. In August of this year, Instinet stockholders were also paid a dividend of USD 0.32 per common share, based upon the net after-tax proceeds of the Instinet's sale of Lynch, Jones & Ryan, Inc. As a result of these transactions, NASDAQ now owns INET ECN.
The completion of INET acquisition enhances NASDAQ's ability to compete with US and international market centres. NASDAQ also expects to realize significant savings as a result of INET technology, while investors will benefit from increased limit order interaction, improved quality of execution, increased speed and a low-cost trading platform.
"This transaction is a key part of NASDAQ's growth plan to provide the most liquid and efficient market for global equities, and to be the number one market for trading stocks," says Bob Greifield, president and chief executive officer of NASDAQ. "With increased order interaction in both NASDAQ and exchange-listed securities -- combined with a rising understanding among public companies about the importance of market quality -- we will also improve our ability to attract listings."
"Silver Lake Partners' acquisition of Instinet Group's Value Added Brokerage was pivotal in making this step possible. We would like to thank them and all of our partners including Hellman & Friedman LLC, JP Morgan, and Merrill Lynch, for their efforts in completing the transaction."
NASDAQ expects to transition to the INET trading platform within 12 months, while maintaining its in-place Technology Roadmap.
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