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solzberg in Mergers & Acquisitions,

ICE buys Trayport for $650 mn

Intercontinental Exchange (ICE), an owner of futures markets and the New York Stock Exchange, agreed to buy Trayport from BGC Partners for $650 mn in stock, adding a key piece of infrastructure in the European energy trading industry. The agreement was unanimously approved by the Boards of Directors of both companies, and the transaction is expected to close in the first quarter of 2016.

The technology developed by London-based Trayport helps brokers and energy producers trade power, natural gas and coal products in Europe. ICE already dominates European energy trading given its control of markets for refined products, natural gas and Brent crude oil, the primary global benchmark for oil. Trayport expands its reach in the less-regulated over-the-counter energy markets.

To note, the deal comes three weeks after ICE said it would pay $5.2 bn to buy Interactive Data, adding a service that helps price corporate bonds. ICE expects to complete the deal also in the first quarter of 2016.

I like ICE's current activity on M&A front and believe that the upcoming deals will beneficial for the company in long term.