Duncan Niederauer will become president of combined NYSE-ICE company

In the $8.2bn deal, Duncan Niederauer will become president of the combined company and CEO of the NYSE Group.

Hail to the chief: Duncan Niederauer, CEO of NYSE Euronext. Photograph (AFP)

Duncan Niederauer, CEO of NYSE Euronext, will become president of the combined IntercontinentalExchange-NYSE company and CEO of the NYSE Group.

The US financial company IntercontinentalExchange (Ice) has announced that it will buy its rival derivatives exchange and clearing house operator NYSE Euronext in a cash and stock deal worth $8.2bn ($33.12 per share).

Under the terms of the transaction, which is expected to close in the second half of 2013, NYSE Euronext shareholders will own 36 per cent of Ice shares .

Ice will maintain dual headquarters in Atlanta and New York. The New York headquarters will be located on Wall Street; Ice will also open a new Manhattan office in June 2013.

Earlier in 2012, European regulators restricted the German transaction services provider Deutsche Boerse from acquiring NYSE Euronext. With a total market value of $15.2bn, the new, combined Ice-NYSE Euronext will soar past Deutsche Boerse to become the third-largest exchange group in the world.

Jeffrey Sprecher, chairman and CEO of Ice, said: 

Our transaction is responsive to the evolution of market infrastructure today and offers a range of growth opportunities, while enhancing competition in US and European markets and broadening our ability to address new markets and offer innovative products and services on a global platform.

We believe the combined company will be better positioned to compete and serve customers across a broad range of asset classes by uniting our global brands, expertise and infrastructure. With a track record of growth and returns, clearing and M&A integration, we are well positioned to transform our combined companies into a premier global exchange operator that remains a leader in market evolution.

Duncan Niederauer, CEO of NYSE Euronext, said:

This transaction leverages the strength of our iconic brand and the value we have created in our global equity and derivatives franchises – positioning the business for solid long-term growth and development. We are bringing together two highly complementary businesses, creating an end-to-end multi-asset portfolio that will be strongly positioned to serve a global client base and capture current and future growth opportunities.

Morgan Stanley, BMO Capital Markets, Broadhaven Capital Partners, JPMorgan, Lazard, Societe Generale and Wells Fargo acted as advisers to Ice. Perella Weinberg, BNP Paribas, Blackstone, Citigroup, Goldman Sachs and Moelis acted as advisers to NYSE.