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Nomura Holdings, Inc. today announced that it has signed an agreement to purchase global agency-broker Instinet Inc., a major provider of electronic trading services for institutional investors.
Nomura Holdings will, through a subsidiary, acquire a 100% stake in Instinet, in an all-cash transaction, from majority owner Silver Lake Partners, a leading private equity firm focused on technology and related industries, and Instinet’s current management team.
Along with the ongoing movement towards the unbundling of execution and research, both electronic and algorithmic trading have seen rapid expansion due to advances in information technology, and many clients now require sophisticated trading technologies and execution service capabilities.
With the acquisition of Instinet, Nomura Group will add advanced execution technologies to its high-quality research offering, and position itself to provide hedge funds, pension funds, and other institutional investors with even higher value-added trading technologies and order execution services. In addition, Nomura will add Instinet’s global agency brokerage business with approximately 1,500 clients worldwide and a presence in all major financial markets.
The acquisition of Instinet will bring about synergy and allow Nomura Group to secure a leading position in this growing market, as Nomura Group will be able to match its strong client base with Instinet’s advanced trading platforms and products, especially in Asia and Europe, where continued rapid growth in electronic trading is anticipated.
