Intercontinental Exchange is to acquire Standard & Poor’s Securities Evaluations, Inc. (SPSE), a provider of fixed income evaluated pricing, and Credit Market Analysis (CMA), a provider of independent data for the over-the-counter (OTC) markets from McGraw Hill Financial (MHFI).
When completed, the acquisition will enable ICE to offer customers new data and valuation services. Under the terms of the agreement, ICE can elect to satisfy its payment of the purchase price due at the close of the transaction in either cash or shares of ICE’s common stock. All other terms of the agreement were not disclosed. The transaction is subject to regulatory approvals.
"With rising demand for independent data in the global fixed income and credit markets, this transaction will support the need for innovation and increased risk management and valuation services,” says ICE Chairman and CEO Jeffrey C Sprecher (pictured). "We look forward to serving customers in these markets as they become more transparent, and as pricing becomes more accessible.”
“After a strategic review of our portfolio, we determined that we do not have critical mass in the area of securities pricing. Therefore, this choice is the right decision for MHFI and S&P Global Market Intelligence,” says Mike Chinn, President of S&P Global Market Intelligence. “ICE is positioned to expand coverage in derivatives and offer a multi-asset class, comprehensive source for pricing and reference data, so clients of SPSE and CMA will benefit as well. Once the transaction closes, we will work together with ICE to ensure a seamless transition.”