INTERACTIVE DATA TO ACQUIRE 7TICKS, VENDOR OF
HIGH PERFORMANCE TRADING NETWORKS
Posted December 15, 2009
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.”
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 data-feed services.
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
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