Atos Origin, NYSE Complete AEMS Joint Venture Transaction

Ruzan Haruriunyan's picture

Atos Origin (Euronext Paris: ATO ), a leading IT services company, and NYSE Euronext (NYSE Euronext: NYX), the world's leading exchange group, announced the completion of their transaction in which NYSE Euronext acquires the 50% stake in Atos Euronext Market Solutions (AEMS) owned by Atos Origin, and Atos Origin acquires AEMS's third-party Clearing and Settlement and Capital Markets businesses. This agreement was previously announced in December 2007.

As a result of this transaction, NYSE Euronext acquires 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. The closing of this acquisition completes the insourcing of NYSE Euronext's European technology operations and enables the full integration of AEMS's third-party exchange business into NYSE Euronext Advanced Trading Solutions.

The transactions have resulted in a payment of €282 million (US $445 million), subject to adjustments, from NYSE Euronext to Atos Origin and of €14 million (US $21 million) from Atos Origin to AEMS. Through the transactions, NYSE Euronext acquired the cash balance carried by AEMS at the closing. Such balance was approximately €113 million ($178 million) at 30 June 2008.

Philippe Germond, Chief Executive Officer of Atos Origin said, "This transaction is beneficial for both parties. After having provided quality technology services to NYSE Euronext for more than 10 years, and having been its partner in its international development, Atos Origin is now contributing by this new move to the future development of one of its longstanding customers. I am happy this successful relationship will now be continued through a preferred supplier arrangement.

"I am also very confident the strong competencies of the AEMS Clearing & Settlement and Capital Market teams will contribute to the development of Atos Origin and to our strategy of delivering Business Outcome, especially for our financial services customers.

"Furthermore, this transaction provides Atos Origin with an increased financial flexibility to invest in its strategic development priorities, such as payments and offshore, and consolidate its current activity portfolio focusing on creating value for our shareholders."

Jean-Francois Theodore, Deputy Chief Executive of NYSE Euronext said, "On behalf of the company, I welcome the AEMS team into the NYSE Euronext family. AEMS expands our portfolio of sophisticated technological solutions and expertise for the benefit of our customers and our own technology mission. This transaction further consolidates our position as a global leader in providing ultra-fast trading functionality and connectivity to financial services firms and exchanges around the world."

This agreement follows the successful longstanding relationship between Atos Origin and Euronext, and allows the two companies to focus on their core businesses, given recent trends in their respective industries. --

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