INTERACTIVE DATA TO ACQUIRE 7TICKS, VENDOR OF
HIGH PERFORMANCE TRADING NETWORKS
BEDFORD, Mass. – Interactive Data Corporation
(NYSE: IDC), a leading provider of financial market data, analytics and
related solutions, 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.
“Increasing our penetration in the electronic trading sector is one of our top long-term strategic priorities, and we believe that acquiring 7ticks will enable us to make significant progress in this area,” says Ray D’Arcy, President and CEO of Interactive Data. “Over a relatively short period of time, 7ticks has built a world-class, ultra low latency network infrastructure that is attracting a growing number of leading-edge institutional customers. We are excited by the opportunities we see to elevate our value proposition to our global customer base by combining our low latency consolidated market data services with ultra low latency managed connectivity from 7ticks.”
“We are extremely pleased to join forces with Interactive Data,” says
Joe Bigane, Managing Director, 7ticks. “During the past few years, we
have generated significant momentum in the marketplace and we are well
positioned to build on this initial success. With Interactive Data’s
extensive range of complementary world-class offerings, strong customer
relationships, extensive global distribution channels and financial
resources, we believe that we can accelerate our growth as we expand our
customer base and build out our infrastructure.”
In recent years, financial institutions have increasingly moved to evolve their trading operations to take advantage of changes in the financial markets and continual advances in technology by deploying sophisticated automated trading programs. Successful execution of these trading programs requires ultra low latency connectivity between trading systems and a broad range of stock exchanges and trading venues. 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.
Interactive Data expects to retain all of 7ticks’ 42 full-time employees. 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. Services from 7ticks will be marketed as Interactive Data 7ticks following the acquisition’s completion. 7ticks is in the process of increasing its
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