ICE MarketAxess acquisition moved ahead on Wednesday after Intercontinental Exchange said it will buy MarketAxess Holdings in an all-cash deal worth about $6.0 billion. ICE said it will pay $167 per share, which marks a 33% premium to Tuesday’s close. The companies said both boards approved the transaction unanimously.
The deal gives ICE control of MarketAxess and its electronic trading network. MarketAxess connects about 2,100 institutional investors and broker-dealers in more than 90 countries. Meanwhile, ICE said the combination will add that network to its retail bond business, data assets, and global index operations.
ICE MarketAxess Acquisition Terms
The companies set the total enterprise value at about $5.7 billion. They said that equals about 10.6 times MarketAxess’s last 12 months EBITDA, adjusted for expected synergies. The companies expect to complete the deal in the first half of 2027, although shareholder and regulatory approvals still remain.
ICE said the combined business will offer clients one platform for pre-trade analytics, execution, and post-trade services. Jeff Sprecher said the purchase marks a natural next step in ICE’s strategy. In addition, Warren Gardiner said ICE will fund the acquisition fully with new debt.
Financing and Synergy Targets
ICE also said it will keep shareholder returns in place. Furthermore, the company raised its quarterly share repurchase target to $400 million. The companies expect annual run-rate synergies of $100 million within three years.
They also said the ICE MarketAxess acquisition should add to adjusted earnings per share in the first full year after closing. The companies described the deal as a step toward a more complete fixed income marketplace.
You can access our other news on brokers and global market developments here.
Source: LeapRate
