MarketAxess Holdings Inc.
) announced that it has completed the acquisition of Xtrakter
Limited. The net purchase consideration, after deducting acquired
cash, amounts to £25.3 million ($38.5 million). MarketAxess
completed the acquisition from Euroclear on Feb 28, 2013, after
obtaining approval from the UK Financial Services Authority.
Xtrakter is among the market leaders in providing regulatory
transaction and financial market data along with trade matching
services to the European securities markets. MarketAxess expects
the addition of the company to provide competitive advantage in
terms of adapting and benefiting from the changing fixed income
market. It expects to gain from the opportunities arising from
the new regulations being formed.
MarketAxess hopes to work with Xtrakter to develop innovative
fixed income trading and data solutions for European investors
and broker-dealers. Post acquisition, MarketAxess will benefit
from the combination of a broad market and reference data and the
complete suite of trade protocols and post-trade services, which
will help it to deliver enhanced fixed income trading and
investment risk solutions to its customers.
Concurrently, MarketAxess appointed an experienced
professional with expertise in global management consulting and
banking to manage its European and Asian businesses.
MarketAxess' peers also regularly acquire businesses to expand
their business. In Dec, 2012,
NASDAQ OMX Group Inc.
) announced its intention to purchase the corporate management
arm of Thomson Reuters. In the same month,
) announced its intention to buy the largest stock exchange based
on listings -
NYSE Euronext Inc.
) - for $8.2 billion.
MarketAxess carries a Zacks Rank #3 (Hold).
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