Intercontinental Exchange To Buy Interactive Data In $5.2 Bln Cash & Stock Deal

(RTTNews) - Intercontinental Exchange (ICE) said that it agreed to acquire Interactive Data Corporation or "IDC", a provider of financial market data, analytics and related trading solutions, from Silver Lake, the global leader in technology investing, and Warburg Pincus, a global private equity firm. The acquisition is valued at about $5.2 billion, including $3.65 billion in cash and $1.55 billion in ICE common stock.

The agreement was unanimously approved by the Boards of both companies.

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.

The transaction is expected to close by yearend 2015, subject to applicable regulatory approvals.

Adjusted earnings accretion of approximately 5% is expected in the first year post-closing, excluding deal-related amortization.

For the third quarter of 2015, IDC revenues are expected to be $238 million and adjusted EBITDA was $992 million.