29 August 2016
Find out more

CME Group to buy Trayport and Fenics from GFI Group

30 July 2014  |  6039 views  |  0 CME Group Web Logo

Exchange operator CME Group has agreed a deal to buy the Trayport and Fenics trading technology units from GFI Group in a deal worth around $655 million.

Trayport provides trading software for the European energy markets, while Fenics offers price discovery, analytics, risk management and workflow connectivity services for the global OTC FX options markets.

In a transaction designed to keep taxes down, CME Group will pay around $580 million in shares for GFI and assume $240 million in outstanding debt, for a total value of $820 million.

The exchange operator will then immediately sell back GFI's wholesale brokerage business to a consortium led by the current management for $165 million in cash and the assumption of $63 million in liabilities.

This arrangement means that the moves qualify as tax-free exchanges of equity for both groups. The transaction - subject to the GFI shareholder approval - is expected to close in early 2015.

Explaing the acquisition, Phupinder Gill, CEO, CME Group, says: "Overall, we see a number of opportunities with Trayport as we expand our global footprint, including facilitating and servicing Asian energy markets as they emerge.

"The addition of Fenics will allow our FX futures and options business to more effectively and efficiently integrate and connect with the global OTC FX options marketplace."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CME ventures into Mission Impossible territory with investment in Wickr

CME ventures into Mission Impossible territory with investment in Wickr

27 June 2014  |  6774 views  |  0 comments | 1 tweets | 1 linkedin
CME Group says ClearPort was hacked in July

CME Group says ClearPort was hacked in July

18 November 2013  |  4039 views  |  0 comments | 3 tweets | 1 linkedin
Tullett Prebon and GFI end merger talks

Tullett Prebon and GFI end merger talks

10 September 2008  |  6679 views  |  0 comments
GFI buys Trayport

GFI buys Trayport

01 February 2008  |  8629 views  |  0 comments
GFInet to acquire UK software house Fenics

GFInet to acquire UK software house Fenics

14 November 2000  |  2466 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit equens.comVisit VocaLink.comVisit www.abe-eba.eu

Top topics

Most viewed Most shared
hands typing furiouslyBig Data's Three Big Trends in 2016
8353 views 5 | 22 tweets | 13 linkedin
hands typing furiouslyHow Banks Are Losing Millions by Ignoring...
7940 views 11 | 24 tweets | 10 linkedin
India's Unified Payments Interface goes live with 21 banksIndia's Unified Payments Interface goes li...
6970 views comments | 16 tweets | 20 linkedin
Nordea looking for AI and blockchain breakthroughsNordea looking for AI and blockchain break...
6812 views comments | 17 tweets | 21 linkedin
R3 blockchain consortium sheds light on Concord projectR3 blockchain consortium sheds light on Co...
6327 views comments | 14 tweets | 14 linkedin

Featured job

Find your next job