Archipelago to acquire Pacific Exchange

Archipelago to acquire Pacific Exchange

Archipelago Holdings, the parent of electronic stock market ArcaEx, has signed a definitive agreement to acquire the Pacific Exchange (PCX) for $50.69 million.

Under the deal shareholders of PCX Holdings, the parent company of the Pacific Exchange, will receive about $50.69 million or about $83.74 per share. Archipelago will pay 20% of the purchase price in Archipelago common stock and the remaining 80% in cash.

Commenting on the deal, Jerry Putnam, chairman and CEO, Archipelago, says: "Through this acquisition, Archipelago accelerates its entry into the fast growing options market and diversifies its business."

In addition to the options business, Archipelago Holdings will also acquire the self-regulatory organisation (SRO) of the PCX, as well as a 20% ownership interest in the Options Clearing Corporation (OCC).

ArcaEx currently operates as the exclusive equity trading facility of the PCX. but following the merger, PCX Holdings, PCX and PCX Equities will operate as wholly-owned subsidiaries of Archipelago Holdings.

Comments: (0)