TMX Group Limited (TMX Group) is to acquire London-based Trayport Holdings Limited, and its US-based affiliate, Trayport Inc – a provider of pre-trade energy solutions for traders, brokers and exchanges – from Intercontinental Exchange (ICE) for GBP550 million (CAD931 million) in total consideration, including GBP350 million (CAD592 million) in cash.
In conjunction with the proposed acquisition of Trayport, TMX Group has agreed to sell Natural Gas Exchange Inc (NGX) and Shorcan Energy Brokers Inc (Shorcan Energy) to ICE, valued at a combined GBP200 million (CAD339 million). The sale of these assets was an important component of TMX Group’s successful bid, which is part of the total consideration for the acquisition of Trayport.
“The acquisition of Trayport brings a proven team of product development, data, analytics and sales talent to TMX and immediately strengthens our global data and analytics business,” says Lou Eccleston (pictured), Chief Executive Officer, TMX Group. “From a strategic perspective, this transaction will significantly accelerate TMX’s global expansion, increase the portion of our revenue from recurring sources and enhance the portfolio of analytics products in our Market Insights business. As we look across our multi-faceted business, we see significant opportunities to leverage Trayport’s proven expertise and premier position to enable TMX to continue to thrive in today’s global marketplace.”
Trayport was founded in 1993 and currently has approximately 240 employees in offices in London, New York and Singapore. Trayport will continue to license its solutions platform to serve a global client base comprised of energy commodities traders, exchanges, wholesale brokers, and central clearing counterparties (CCPs), providing price discovery, trade execution, and post-trade services. TMX Group plans to strategically invest to support Trayport’s existing growth initiatives while also seeking ways to develop and deploy analytics and benchmark products to facilitate better trading strategies, leverage the combination of Trayport’s European leadership with TMX’s expertise in North American energy markets to create new products, and explore strategic relationships in new geographies.