In a press release earlier this week,
) announced its decision to acquire 100% stake in
FX Alliance Inc
) for $22 per share. It will fund the purchase in cash. No other
details were disclosed except that the deal is expected to reach
completion in the third quarter of this year.
Thomson Reuters will acquire FX Alliance's electronic foreign
exchange platform for approximately $625 million, according to
Reuters. Barclays, a unit of
) and J.P. Morgan, a unit of
JPMorgan Chase & Co.
), will monitor the proceedings for Thomson Reuters and FX
Sources reveal that both the companies will merge their
respective platforms and the total volume of trade recorded by the
combined company will make it the largest electronic trading pool
in foreign exchange.
FX Alliance's largest shareholder, Technology Crossover
Ventures, also lent its approval for the deal and suggested that
the other shareholders do the same. The acquisition is slated to
enable FX Alliance to cater to a wide range of people across the
globe, substantially increasing its client-base. It will also have
the opportunity for greater innovation.
The news came as a shock to most of the industry players, who
believe it will be difficult to merge two completely different
platforms on a common base. However, they are eager to witness the
outcome of this venture.
The electronic foreign exchange trading solutions provider FX
Alliance was established in 2000. It currently caters to over 1,000
institutional clients around the world and operates round the
clock, 5-days a week.
FX Alliance currently retains a Zacks #1 Rank, which translates
into a short-term Strong Buy rating. Thomson Reuters holds a
short-term Zacks #3 Rank (Hold).
BARCLAY PLC-ADR (BCS): Free Stock Analysis
FX ALLIANCE INC (FX): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
THOMSON REUTERS (TRI): Free Stock Analysis
To read this article on Zacks.com click here.