Nasdaq to pay Deutsche Bourse $1.1bn for ISE

Nasdaq to pay Deutsche Bourse $1.1bn for ISE

As it moves ahead with a planned LSE merger, Deutsche Bourse has agreed to offload International Securities Exchange (ISE) to Nasdaq for $1.1 billion in cash.

The deal covers ISE's three US electronic options exchanges - ISE, ISE Gemini, and ISE Mercury - but excludes its stakes in the Bats Global Markets exchange operator and blockchain startup Digital Asset Holdings, which both stay with Deutsche Boerse.

The German giant acquired ISE in 2007 through its majority-owned Eurex subsidiary in a $2.8 billion merger agreement. But now, as it hopes to wrap up its merger with the London Stock Exchange, the firm says that it is selling off ISE as part of its 'Accelerate' growth programme.

"We are pursuing the goal to become the number one or two player in every business in which we operate. This goal requires an active management of our business portfolio. In areas where we are not able to meet this goal, we are evaluating other options," says Deutsche Boerse CEO Carsten Kengeter.

For its part, Nasdaq says the acquisition allows it to "improve efficiencies for clients, broaden its technology offering, and provides the size and scale within the equity options industry to innovate and experiment in the market".

The transaction, subject to approval by competition and supervisory authorities, is slated to close in the second half of the year.

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