Exchange operator Nyse Euronext has signed a definitive agreement to acquire New York market data technology outfit Wombat Financial Software for $200 million in cash.
Formed in 1997 privately-held Wombat develops, sells and services market data software for financial institution trading - specifically distributed ticker plant products and market data distribution systems.
Wombat serves over 100 customers worldwide including all top 12 of the world's largest financial institutions. Nyse Euronext says in 2007, Wombat's revenues grew 124% to $28 million, with Ebitda margins in excess of 35%.
Commenting on the acquisition, Duncan Niederauer, Nyse Euronext CEO, says: "Wombat bridges our commercial technology and market data strategies, broadening our customer reach and enabling Nyse Euronext to deliver advanced technology solutions to our customers' increasing data management challenges."
Nyse Euronext head of global technology, Larry Leibowitz, says the Wombat platform will be integrated with the exchange's TransactTools connectivity and messaging infrastructure to offer customers an efficient end-to-end system to access markets globally.
The Wombat data management technology will be delivered both as enterprise software products and as managed services on the Nyse TransactTools secure financial transaction infrastructure (SFTI) network.
By adding market data management software to its portfolio of commercial products, Nyse Euronext says it will be able to integrate and link the messaging and data platforms to offer new services for smart order routing, risk management, DMA and other applications.
The US exchange says the transaction is expected to close early second quarter 2008 and will be accretive to its 2009 earnings.
In a separate move Nyse Euronext is reported to be in talks with Malaysia's stock exchange operator, Bursa Malaysia, regarding a possible tie-up between the two.
According to a report by Malaysian business weekly The Edge, which cites un-named sources, Nyse Euronext has indicated an interest in acquiring a 10% stake in Bursa Malaysia.
In a statement released in response to the report, Bursa Malaysia says it has not concluded any "tie-up", including a possible acquisition of a stake in its business, with any potential strategic partner.
The Malaysian exchange is currently working on an e-trading project with Atos Euronext Market Solutions - the IT services JV formed between Euronext and Atos Origin that Nyse Euronext is in the process of buying out.
AEMS inked a deal with Bursa Malaysia 2003 to implement an electronic trading platform at the exchange.