Interdealer broker Icap is acquiring the outstanding shares of fixed income market data provider Govpx for $13 million.
GovPX, Inc. was founded in 1990 by the major bond dealers and inter-dealer brokers in an effort to bring price transparency to the US Treasury marketplace. Icap has been involved with the firm since inception, participating in the launch of additional information sets and delivery options.
GovPX is primarily distributed as an optional service via the major market data vendors and delivery direct to approximately 1000 client sites. The feed claims over 8000 subscribers. In addition, GovPX offers services to disseminate end of day and historical data.
John Nixon, global head of Icap's information business describes the Govpx brand and subscriber network as an "attractive fit to our existing information business".
He says Govpx will continue to deliver data from multiple sources, including other interdealer brokers and dealers, and will operate as a separate company within Icap's information business under the direction of long serving CEO Lawrence Leuzzi.
In 2004, GovPx operated as a C-Corp and had total revenues of $15.3m.
The acquisition includes GoxPX's working capital of $2.3 million.