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 ceo 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.