NYSE Euronext Agrees To $144 Million Purchase Of Nyfix

   DOW JONES NEWSWIRES 
 

NYSE Euronext (NYX) announced it has agreed to acquire Nyfix Inc. (NYFX) for $144 million, bolstering its efforts to improve its trading operations.

The price tag, which includes preferred stock, comes as operations such as the New York Stock Exchange and Nasdaq OMX Group Inc. (NDAQ) try to stem market-share losses to upstarts such as BATS and Direct Edge.

Nyfix shares will be purchased for $1.675 each, a 95% premium to Wednesday's closing price. The stock traded above $45 in 2000 and was down 74% the past year through Wednesday.

The deal is set to close in the fourth quarter and give NYSE Euronext software intended to improve trading efficiency. The company on July 1 announced order-execution times had been slashed 20-fold at the NYSE with the implementation of the new NYSE Super Display Book system for processing orders. Ever-faster order execution is a key factor for many traders, especially as automated trading grabs an increasing amount of overall trading volume.

The trading system revamp took three months to roll out and completes a process begun 18 months ago. Since then, NYSE has completely replaced its order entry, database and routing systems as well as market-data systems and parts of its post-trade system.

More than 1,000 counterparties connect in Nyfix's marketplace. NYSE Chief Financial Officer Michael Geltzeiler said the acquisition will boost NYSE's technology business "and expands our points of connectivity with customer trading communities." He added cost savings and tax benefits will result from the deal.

NYSE shares closed Wednesday at $28.79 and were inactive premarket.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; [e-mail]