IntercontinentalExchange (NYSE: ICE) has agreed to acquire YellowJacket Software Inc., a New York-based operator of an electronic trade negotiation platform. No financial terms were disclosed for the deal, which is expected to close by the end of Q2. YellowJacket has raised around $4 million in VC funding since mid-2006, from Contour Venture Partners, Greenhill SAVP and the New York City Investment Fund.
IntercontinentalExchange (NYSE: ICE), a leading operator of global exchanges and over-the-counter (OTC) markets, announced that it has entered into an agreement to acquire YellowJacket Software, Inc (YellowJacket). The new business will be operated as a wholly owned subsidiary of ICE.
YellowJacket is a financial technology firm that operates an electronic trade negotiation platform offering a range of trading tools including instant communication, negotiation and data. With the platform, traders can aggregate and consolidate fragmented instant message-based communications and key transaction details on a single screen. Markets currently served include weather, natural gas, power and crude oil. Formed in 2002, YellowJacket is privately held.
“YellowJacket brings an innovative application that is uniquely positioned to meet the demand for electronic efficiencies in the OTC markets where complex options or structured products are involved,” said ICE Chairman and Chief Executive Officer Jeffrey C. Sprecher. “We see many applications of this technology beyond the energy and weather categories, particularly when coupled with ICE's expanding clearing capabilities.”
“Our proven platform supports the negotiation of any energy transaction, any complexity of contract, with any qualified counterparty,” said YellowJacket Co-Founder and President Jacob Pechenik. “We will continue to grow the distribution of our technology and liquidity on our network by leveraging ICE's vast global distribution, asset class diversity and customer base.”
ICE expects to complete its acquisition of YellowJacket in February. Terms of the transaction were not disclosed. The acquisition is not expected to be material to ICE's operating results during the first half of 2008.
IntercontinentalExchange(R) (NYSE: ICE) is a leading operator of global exchanges and over-the-counter (OTC) markets. ICE offers futures and OTC markets on a single trading platform, including markets for crude oil and refined products, natural gas, power and emissions, as well as agricultural commodities and financial products such as canola, cocoa, coffee, cotton, ethanol, orange juice, wood pulp, sugar, foreign currency and equity index futures and options. ICE(R) conducts its energy futures markets, including the leading oil benchmark contracts, through its London-based exchange, ICE Futures Europe(TM). ICE conducts its global agricultural commodity, foreign exchange and equity index futures markets through its U.S. and Canadian exchanges, ICE Futures U.S.(TM) and ICE Futures Canada(TM), and offers clearing services through ICE Clear U.S.(TM) ICE's state-of-the-art electronic trading platform serves market participants in more than 55 countries. ICE is included in the Russell 1000(R) Index and the S&P 500 Index. Headquartered in Atlanta, ICE has offices in Calgary, Chicago, Dublin, Houston, London, New York, Singapore and Winnipeg. For more information, please visit www.theice.com.