Intercontinental Exchange To Buy Trayport From BGC Partners, GFI For $650 Mln

(RTTNews) - Intercontinental Exchange Inc. (ICE) said it has agreed to acquire Trayport for $650 million in ICE common stock. Trayport is a subsidiary of GFI Group (GFIG), which was acquired by brokerage company BGC Partners Inc. (BGCP) in March 2015.

London-based Trayport, which provides trading and aggregation software, licenses its technology platform to serve brokers for electronic and hybrid trade execution primarily in the European over-the-counter or OTC utility markets. Trayport will continue to serve its customers - including energy producers and consumers, brokers, exchanges and clearing houses - with its existing technology platform.

The transaction is expected to close as early as the first quarter of 2016, subject to receipt of such approvals. After the close of the transaction, BGC and GFI are expected to remain customers of Trayport.

The transaction will enable ICE to provide new services to the European OTC energy markets, including European power, natural gas and coal. ICE anticipates an immaterial impact to its 2016 adjusted earnings per share.

BGC Partners and GFI said in a separate statement that Trayport generated revenues of approximately 50 million pounds, or $80 million, at historically relevant exchange rates, over the twelve months ended September 30, 2015. These revenues were predominantly generated via recurring software license and subscription fees.

Trayport's revenues increased by about 9 percent year-on-year in British pounds during the third quarter of 2015.