TMX Group CEO: $931M deal for Trayport bolsters analytics unit
TORONTO -- TMX Group Ltd. has signed a deal to acquire Trayport Holdings Ltd. from Intercontinental Exchange Inc. in an agreement valued at $931 million.
Under the transaction, TMX Group will pay $592 million in cash and sell Natural Gas Exchange Inc. and Shorcan Energy Brokers to ICE for $339 million.
TMX CEO Lou Eccleston told BNN they’ve had their radar out for an acquisition “for quite some time.”
“The things we really were focused on were how can we accelerate and support our organic strategy,” he said in an interview Friday. “And in particular, that was around building a global business.”
“Then you think about more recurring revenues – how can we look to grow in a data and analytics world. And this does this as well.”
Trayport provides services to energy commodities traders, exchanges, wholesale brokers and central clearing counterparties.
It has about 240 employees in offices in London, New York and Singapore.
While Trayport is London-based, Eccleston said Brexit shouldn’t be an issue, given that it operates in over 42 countries.
The companies said that the UK Competition and Markets Authority has approved the sale of Trayport to TMX Group.
The sale of NGX and Shorcan Energy to ICE is subject to regulatory approval and notifications including approval from the Canadian Competition Bureau.
-- With files from BNN