ICE to ditch Nyse Technologies; spin off Euronext

IntercontinentalExchange has confirmed plans to sell Nyse Euronext's technology unit and spin off the Euronext exchange in an initial public offering.

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ICE to ditch Nyse Technologies; spin off Euronext

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In a conference call a week after closing the $11 billion Nyse Euronext acquisition, ICE chief executive Jeff Sprecher said a "new home" will be sought for the Nyse Technologies' assets.

Among the businesses up for the chop are Nyfix, the trading systems vendor acquired by Nyse for $144 million in 2009, market data tech outfit Wombat, bought for $200 million in 2008, and the SuperFeed data dissemination business.

However, ICE will keep hold of the Nyse US and UK data centres, while market data distribution revenues will be switched back to the exchanges.

Meanwhile, Sprecher has set a target of next summer to spin off Euronext through an IPO, once it has been separated from the Liffe futures market, although, with reported interest in the business from the LSE, Nasdaq OMX and Deutsche Boerse, a straight sale is not being ruled out.

The planned changes are expected to help the merged business make savings of $500 million, with headcount dropping from around 4100 to 2600.

ICE yesterday also revealed that it has bought the Singapore Mercantile Exchange from Financial Technologies Ltd in a cash deal worth around $150 million.

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