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Atos Origin (Euronext Paris: ATO), an international IT services company, and NYSE Euronext (NYSE Euronext: NYX) today announced their agreement in principle for NYSE Euronext to acquire the 50% stake in AtosEuronext Market Solutions (AEMS) owned by Atos Origin.
Upon successful completion of this transaction and subject to the prior information and consultation of all relevant employee representative bodies, NYSE Euronext would re-acquire ownership of the NSC cash trading and LIFFE CONNECT® derivatives trading platform technology and all of the management and development services surrounding these platforms as well as AEMS’s third-party exchange technology business. Atos Origin would acquire the third-party Clearing & Settlement and Capital Markets businesses from AEMS.
Such transactions would result in a payment of €275 million (US$400 million) from NYSE Euronext to Atos Origin[1]and of €20 million (US$29 million) from Atos Origin to AEMS.
This agreement in principle follows a longstanding, successful relationship between Atos Origin and Euronext, and allows the two companies to focus on their core businesses, given recent trends in their respective industries. Both parties will extend their historical relationship, Atos Origin becoming NYSE Euronext’s preferred supplier in integration and outsourcing IT services.
It is expected that the contemplated re-integration of the technology businesses within Atos Origin and NYSE Euronext will be completed by the end of the summer in 2008.
Philippe Germond, Chief Executive Officer of Atos Origin said, “The agreement is very satisfactory for both parties, which will run IT activities that are core to their respective business. Atos Origin can thus turn to the future and pursue its strategy going forward to reinforce the company in businesses such as payment services in
Jean-François Théodore, Deputy Chief Executive Officer of NYSE Euronext said, “Insourcing our technology gives us greater flexibility and a competitive advantage in a fast-moving exchange landscape where technology is key. Bringing the expertise of a large number of highly skilled IT personnel back in-house will enable us to better deliver on our commitments to provide our customers with more efficient trading services and to deliver IT synergies to our shareholders. We will also be able to continue our strategy of selling our state-of-the-art trading platforms to more exchanges around the world.”
