Financial information group Markit has acquired the TZ1 environmental registry from the New Zealand Stock Exchange (NZX) in an all-share transaction valued at $37.1 million.
The TZ1 Registry has more than 350 customers and over 38 million tonnes of registered voluntary emission reductions.
The initial consideration to NZX will be received up front in Markit shares, which will be held for the term of the deal through to the end of 2011. NZX will receive 50% of profits over that period, and also has an earn-up at the end of these two and a half years should the registry outperform its baseline targets.
Lance Uggla, chief executive officer of Markit, says: "The acquisition of TZ1 Registry will give Markit a strong foothold in the fast-growing carbon markets and broader global environmental markets. The TZ1 Registry will lay the foundations for Markit's overall strategy to support the financial and commodities markets by providing data transparency and operational efficiency."
The global market for carbon emissions grew to $126 billion last year, up from $63 billion in 2007 and nearly 12 times the value in 2005, according to a World Bank report.
Markit is building capability within this nascent industry, most recently announcing the launch of a set of indices focusing on the carbon markets.
The UK-based firm says it will continue to operate the TZ1 Registry business from its existing locations in Auckland, Wellington, London and New York. Helen Robinson will continue to lead the registry's operations as part of Markit's commodities division led by EVPs Niall Cameron in London and Sal Naro in New York.