Intercontinental Exchange to acquire TMX Atrium

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By Ted Liu

Intercontinental Exchange (NYSE: ICE), an operator of global exchanges and clearing houses and provider of data and listings services, has agreed to acquire TMX Atrium from TMX Group (TSX: X).
Terms of the agreement were not disclosed, and the transaction is expected to close within 90 days, subject to regulatory approvals.

Marlin & Associates of New York and Toronto acted as exclusive strategic and financial advisor to TMX in connection with the transaction.

TMX Atrium will become part of ICE Data Services and will be integrated with the Secure Financial Transaction Infrastructure (SFTI).

“With the addition of TMX Atrium, we are enhancing our service to customers by expanding the reach and access of SFTI. This includes adding the lowest-latency connection between Toronto and New York, a key hub for North American financial market participants. This will extend ICE Data Services’ solutions which include networking, co-location, real-time feeds, and desktop data tools for global equities, derivatives and fixed income markets,” said Lynn Martin, President & COO of ICE Data Services.

“The sale of the TMX Atrium business is the result of a shift in our strategic focus from infrastructure services to providing intellectual property-based analytics solutions that drive client investment decisions,” said Eric Sinclair, President, TMX Market Insights and Group Head of Information Services.

TMX introduced colocation services in 2008 and in November 2010, TMXnet GTA, an ultra-low latency network designed to provide international and domestic firms with technology infrastructure located in Downtown Toronto. In June 2011, TMX implemented its ultra-low latency network, TMXnet North America (NA), between Toronto, New York and Chicago. In July 2011, TMX acquired London, UK based Atrium Networks (rebranded TMX Atrium), expanding data network into Europe.

Marlin & Associates acted as financial advisor to Atrium Networks in connection with the sale.

photo credit: TMX Atrium