Stephane Boujnah, Euronext
This transaction, which is subject to regulatory and anti-trust approvals and is expected to occur in Q3 2017, aims to establish Euronext's presence in the FX segment, diversify Euronext's top line, accelerate its growth profile and enable the group to extend its "best execution" value proposition to an additional asset class.
FastMatch's management will remain invested with a c.10% interest, with minority rights.
"The acquisition of FastMatch breaks new ground for Euronext, through expansion into the FX market which is the world's largest traded asset class. This will broaden the spectrum of products we provide to capital market users, whilst meaningfully diversifying our revenue and creating long-term value and growth for customers and shareholders." said Stéphane Boujnah, Chairman and CEO of the Managing Board of Euronext NV.
Euronext will bolster FastMatch's European presence through increased access to institutional clients across Europe. Additionally, the roll-out of real-time and historical data products will be pursued in the short-term. In the mid-term, FastMatch and Euronext will aim to achieve presence in the FX derivatives space.
The total consideration to be paid at closing by Euronext is $153 million for c.90% of the share capital (on a debt free cash free basis), with a $10 million contingent earn-out. The management will remain invested with a c.10% ownership post-closing with minority rights.