MarketAxess Acquires Xtrakter

Recently, MarketAxess Holdings Inc. (MKTX - Snapshot Report) announced that it has completed the acquisition of Xtrakter Limited. The net purchase consideration, after deducting acquired cash, amounts to £25.3 million ($38.5 million). MarketAxess completed the acquisition from Euroclear on Feb 28, 2013, after obtaining approval from the UK Financial Services Authority.

Xtrakter is among the market leaders in providing regulatory transaction and financial market data along with trade matching services to the European securities markets. MarketAxess expects the addition of the company to provide competitive advantage in terms of adapting and benefiting from the changing fixed income market. It expects to gain from the opportunities arising from the new regulations being formed.

MarketAxess hopes to work with Xtrakter to develop innovative fixed income trading and data solutions for European investors and broker-dealers. Post acquisition, MarketAxess will benefit from the combination of a broad market and reference data and the complete suite of trade protocols and post-trade services, which will help it to deliver enhanced fixed income trading and investment risk solutions to its customers.

Concurrently, MarketAxess appointed an experienced professional with expertise in global management consulting and banking to manage its European and Asian businesses.

MarketAxess’ peers also regularly acquire businesses to expand their business. In Dec, 2012, NASDAQ OMX Group Inc. (NDAQ - Analyst Report) announced its intention to purchase the corporate management arm of Thomson Reuters. In the same month, IntercontinentalExchange Inc. (ICE - Analyst Report) announced its intention to buy the largest stock exchange based on listings – NYSE Euronext Inc. (NYX - Analyst Report) – for $8.2 billion.

MarketAxess carries a Zacks Rank #3 (Hold).