Virtu Financial, Inc. (NASDAQ:VIRT) the technology-enabled market maker and liquidity provider to the global financial markets, today announced it has entered into a definitive agreement to sell Virtu’s fixed income trading venue, BondPoint, to Intercontinental Exchange (NYSE:ICE).
The transaction is expected to be completed in the first quarter of 2018, and the closing is subject to applicable regulatory reviews and approvals. Virtu will provide further details on its third quarter earnings call on November 7, 2017.
BondPoint is a provider of electronic fixed income trading solutions for the buy-side and sell-side offering access to centralized liquidity and automated trade execution services through its ATS, linking more than 500 financial services firms.
Under the terms of the agreement, Virtu will receive $400 million in cash upon the close of the transaction, the net after-tax proceeds of which will be used to repay a portion of Virtu’s outstanding term loan.
Douglas A. Cifu
Douglas A. Cifu, Chief Executive Officer of Virtu, remarked:
The management team of BondPoint has done an extraordinary job over the years creating a leading franchise in credit trading. After a thorough analysis, we concluded that BondPoint is a unique asset better suited to operate outside of Virtu’s core operations.” Mr. Cifu continued, “Following a competitive process, ICE distinguished itself as a strong and stable global organization that could provide the best home for BondPoint, its customers, and its employees.