Summary
On April 1, 2013, The NASDAQ OMX Group, Inc. announced its entry into a definitive Purchase Agreement to acquire certain assets and liabilities of BGC Partners, Inc., related to BGC's fully electronic U.S. Treasury brokerage and market data businesses, including the eSpeed brand. This strategic acquisition for $750 million in cash, plus contingent future issuances of NASDAQ OMX common stock, aims to enhance NASDAQ OMX's Transaction Services division. The acquisition is subject to customary closing conditions, including antitrust approval under the Hart-Scott-Rodino Act, and is expected to close in the second half of 2013. To finance the cash component of the deal, NASDAQ OMX has secured a commitment for an $800 million senior unsecured bridge loan facility. This move signifies NASDAQ OMX's intent to expand its offerings in the fixed income trading and data space.
Key Highlights
- 1NASDAQ OMX to acquire eSpeed technology and U.S. Treasury brokerage/market data businesses from BGC Partners for $750 million cash.
- 2Transaction includes 100% equity in eSpeed Technology Services and Kleos Managed Services, and the eSpeed brand name.
- 3Contingent future payments to sellers include NASDAQ OMX common stock, tied to revenue targets over 15 years.
- 4Acquisition is expected to close in the second half of 2013, pending antitrust and other closing conditions.
- 5NASDAQ OMX has secured an $800 million bridge loan commitment to finance the cash portion of the acquisition.
- 6Sellers and Cantor Fitzgerald have agreed to non-compete clauses and employee non-solicitation agreements for a period post-closing.
- 7The acquired business will be integrated into NASDAQ OMX’s Transaction Services US and UK operations.