Exchange to pay $625M for Creditex Group
Written on June 5, 2008
Securities exchange IntercontinentalExchange Inc. said Tuesday it has entered into an agreement to buy credit processor Creditex Group Inc. in a cash and stock deal valued at $625 million.
ICE is an operator, across one platform, of exchanges worldwide and of OTC markets in futures and OTC products, including crude oil, and natural gas.
Under the deal’s terms, IntercontinentalExchange (ICE) will pay $565 million in common stock and $60 million in cash, as well as certain working capital adjustments at closing. The company plans to fund the cash portion of the deal with cash on hand.
The deal is expected to close late in the third quarter, pending regulatory and other approvals paydayloans.com. Creditex will then operate as a wholly owned subsidiary of IntercontinentalExchange.
IntercontinentalExchange expects the acquisition will boost earnings in a year to 18 months after closing.
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