Intercontinental Exchange (ICE) has entered into a definitive merger agreement to acquire New York Board of Trade (Nybot) for a consideration of around $1bn, comprising 10.297m shares of ICE common stock and $400m in cash. Nybot would become a wholly-owned subsidiary of ICE, according to a joint statement released by the exchanges.
Speculation had been mounting in recent weeks over a potential ICE/Nybot deal with a Nybot board meeting called on 14 September. In announcing the acquisition, Jeff Sprecher, ICE chairman and CEO confirmed ICE's interest in Nybot's clearinghouse. "The combination of two global and rapidly growing commodity marketplaces, together with a highly respected clearinghouse, allows us to expand ICE's offerings for market participants, as well as create long-term shareholder value," he said.
Most observers said they saw value in ICE wanting Nybot's clearing facility but less value in the New York exchange's product suite. "I think...