In October, Intercontinental Exchange agreed to acquire Interactive Data for $5.2 billion, making it the third-largest data provider in global markets.
Interactive Data, based in Bedford Mass, is one of the world's leading providers of financial data, serving more than 5,000 banks, hedge funds, asset managers and other customers. The company provides pricing, reference data and trading solutions, and has an expertise in "evaluated pricing" for securities such as bonds and swaps that are thinly traded and hard to value.
“Interactive Data is a cornerstone in ICE’s strategy to provide more data and valuation services to our customers around the world,” Jeff Sprecher, ICE Chairman and CEO, said in a statement after the deal closed. “This acquisition strengthens our expertise and ability to meet the rising global demand for financial data and analysis. We look forward to building on their track record of growth, while delivering strong value to our shareholders by leveraging our experience in integration, technology and markets.”
In a November conference call with ICE shareholders, Sprecher said buying IDC will help the company target several broader trends that are affecting a wide range of markets. These include "the increasing need for more information to optimize capital efficiency" as a result of new rules that require more capital on bank balance sheets and collateral on all risk positions. In addition, as markets fragment in response to new regulations, Sprecher said he expects there will an increasing demand for valuation services provided by companies like IDC.