ICE to Acquire IDC From Silver Lake & Warburg Pincus in $5.2B Deal

Oct 26 2015 | 6:38pm ET

Global trading exchange network Intercontinental Exchange (ICE) has entered into an agreement to acquire Interactive Data Corporation (IDC). 

IDC is a well-known provider of financial market data, analytics and related trading solutions to institutional clients worldwide. It is currently owned by private equity firms Silver Lake Parners and Warburg Pincus.

The acquisition is valued at approximately $5.2 billion, including $3.65 billion in cash and $1.55 billion in ICE common stock, according to a press release. The deal builds on Intercontinental Exchange’s global market data growth strategy by expanding the firm’s markets, technology platforms and services.

IDC is well known within the mutual fund, bank, asset management, hedge fund, securities and financial instrument processing and administration sectors for the provision of financial market data, benchmark and valuation services. The combined company will offer customers efficiencies in accessing data on an integrated platform while serving the growing demand for data, analysis, valuation and connectivity globally, noted the release.

"This transaction furthers our expansion into meeting the financial information needs of our market participants globally. With our diverse markets across virtually all asset classes, IDC will enable us to address more growth opportunities by leveraging the distribution and reach of our complementary global platforms for trading, clearing and data on a combined basis," said ICE chairman and CEO Jeffrey Sprecher. "With IDC as the cornerstone in the next phase of extending our services, we will build on our track record of solid execution on integration and innovation by focusing on the needs of our customers in the evolving data services marketplace."

"Today’s announcement marks the next step in an exciting journey for IDC," said Stephen Daffron, CEO of IDC. "With ICE, we have the long-term capital, strategic support and collective set of relationships to further grow our company and evolve our platform in the rapidly-changing capital markets landscape. 

Silver Lake and Warburg Pincus bought a controlling stake in IDC in 2010 in a transaction worth $3.4 billion. They have been shopping IDC since June.

The transaction is expected to close by yearend 2015, subject to applicable regulatory approvals, and is expected to generate annual cost synergies of $150 million by the third year.

In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...


CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...