7ticks To Be Acquired by Interactive Data (IDC)

December 14, 2009 9:27 AM EST
Interactive Data Corporation (NYSE: IDC) today announced it has signed an agreement to acquire 7ticks, LLC, an innovative provider of electronic trading networks and managed services. The transaction is expected to be completed in early 2010, contingent upon closing conditions.

This acquisition represents an important element in Interactive Data's strategy to address the latency sensitive trading needs of its institutional customers. Acquiring 7ticks will accelerate Interactive Data's plans to increase the flexibility, agility and resiliency of its network infrastructure, thereby supporting a broader range of high-quality direct exchange access and consolidated datafeed services.

According to Tabb Group, a leading financial markets research and advisory firm, the global market for low latency connectivity services for direct exchange access is expected to grow from approximately $1.4 billion in 2009 to over $2.0 billion by 2012.

7ticks specializes in providing a growing base of proprietary trading groups, clearing firms, global investment banks, brokers, market makers, hedge funds and independent software vendors with direct exchange access, proximity hosting, and support services for facilitating ultra low latency electronic trading of North American derivatives, options and commodities securities. 7ticks distinguishes itself through industry leading network performance, reliability and monitoring, which can help provide customers with greater insight and transparency into their network connectivity and lower their cost of ownership. The company is privately owned and is headquartered in Chicago, Illinois with hosting facilities in Chicago, the New York area, London and Frankfurt.

Interactive Data expects to retain all of 7ticks' 42 full-time employees, including its leadership team. The 7ticks business will be operated as part of Interactive Data's newly formed Real-Time Market Data and Trading Solutions Group, which is led by Jeffrey Banker (see separate announcement also issued today). Services from 7ticks will be marketed as Interactive Data 7ticks following the acquisition's completion. 7ticks is in the process of increasing its U.S. equities coverage and has plans to expand further into Asia and Europe in the coming twelve months.

Assuming the transaction closes in early 2010, Interactive Data anticipates that the acquired business will be accretive to earnings by 2011 through a combination of planned revenue growth and operational synergies.

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