Buckhead resident’s IntercontinentalExchange (ICE) buying NYSE Euronext for $8.2 billion

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Buckhead resident Jeffrey C. Sprecher and his company, SandySprings-based IntercontinentalExchange, Inc., suddenly burst onto the stage ofthe well-known yesterday when it was announced they were acquiring NYSEEuronext in an $8.2 billion stock-for-cash transaction.
 Little known by thepublic but a major player in the financial world,IntercontinentalExchange is an operator of global markets and clearing houses. NYSEEuronext is the global equity, equity options and fixed income derivativesmarket operator.
Twelve-year-old IntercontinentalExchange, often simply knownby its stock sticker ICE, will acquire NYSE Euronext’s operations, includingthe 220-year-old New York exchange also known as the Big Board. The combinedcompany will have dual headquarters in Atlanta and New York City. The New YorkStock Exchange will stay on Wall Street.
The transaction is expected to close in the second half2013, subject to regulatory approvals in Europe and the U.S. and approval byshareholders of both companies.

Jeffrey C. Sprecher

Sprecher will continue as chairman and CEO of the combinedcompany and Scott A. Hill as CFO. Duncan L. Niederauer will be president of thecombined company and CEO of NYSE Group. Four members of the NYSE Euronext boardwill be added to the ICE board, which will be expanded to 15 members.
The NYSE holds the stock listing ofsome of the best known companies in the world, including metro Atlanta giantsCoca-Cola, UPS, Home Depot and Delta Air Lines. Beyond stocks, it also operatesa massive futures market for financial vehicles related to interest rates,which ICE has coveted.
ICE operates trading platforms, butunlike the NYSE it does not trade corporate stocks. Much of the trading doneover its networks is of contracts for crude oil, sugar, and other commodities,which affects the price of things such as gasoline and groceries.
ICE was founded in Atlanta in 2000as an electronic exchange to trade energy futures. It employs about 1,100people worldwide, including about 380 in metro Atlanta. It is predicted theAtlanta operation will grow over time.
The Sandy Springs office of ICE arelocated at 2100 Riveredge Parkway Northwest. Thecompany also has offices in London, New York and Chicago, as well as staff inHouston, Singapore, Calgary, Alberta, and Winnipeg, Manitoba.
ICE reported $1.33 billion inrevenue in 2011, and $1.04 billion through the first nine months of this year.The company earns much of its money from the volume of trading on its array ofexchanges.
The New York exchange remains avenerable symbol, but its influence has waned as trading of stocks and otherinvestments has moved to other digital platforms. NYSE’s revenue fromtraditional trading of stocks has declined, and the company has sought mergerpartners and ways to make itself more efficient in recent years.