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NYSE Euronext to acquire Nyfix

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NYSE Euronext has entered into a definitive agreement to acquire Nyfix, a provider of solutions that optimize trading efficiency, in an all-cash deal for USD1.675 per share of common st

NYSE Euronext has entered into a definitive agreement to acquire Nyfix, a provider of solutions that optimize trading efficiency, in an all-cash deal for USD1.675 per share of common stock. 

The total value of the deal is approximately USD144m, including preferred stock consideration. 

The NYSE Euronext, NYSE Technologies and Nyfix boards of directors have approved the acquisition, which is subject to approval by Nyfix shareholders and customary regulatory approvals. 

The transaction is expected to close in the fourth quarter of 2009 and to be accretive to NYSE Euronext 2010 earnings, excluding one-time deal and restructuring costs.

Upon closing, the Nyfix fix business, incorporating the company’s fix software business and the Nyfix marketplace, will become part of the offerings provided by NYSE Technologies, the commercial technology division of NYSE Euronext. 

The Nyfix marketplace allows more than 1,000 global trading counterparties to connect to one another via more than 9,000 fully managed fix-based messaging channels. 

The integration of both the fix software business and the Nyfix marketplace complements NYSE Technologies’ suite of commercial technology products. NYSE Euronext will explore various alternatives for the Nyfix transactions services business, including its Millennium dark pool. 

Nyfix chief executive Howard Edelstein (pictured) says: ‘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.’

‘The Nyfix fix division complements our strategic corporate goals and technology business, and expands our points of connectivity with customer trading communities,’ says Michael Geltzeiler, executive vice president and chief financial officer, NYSE Euronext. ‘There are natural synergies and efficiencies that will be realized both in terms of costs and tax benefits and we believe this transaction will benefit our customers and shareholders.’

Once the acquisition is complete, the Nyfix business will report to Stanley Young, chief executive officer of NYSE Technologies and co-chief investment officer of NYSE Euronext. Bob Moitoso will continue to lead the Nyfix fix business. 

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