Stock Exchange Software

NYSE to Buy Software Firm

January 15th, 2008 | Author: admin

New York Stock Exchange parent NYSE Euronext said it would buy closely held Wombat Financial Software for $200 million.

The 140-employee company facilitates the management of huge blocks of fast-moving trading data. Such information-management systems have grown in importance for NYSE as a more massive share of its stock-trading business moves to electronic systems from its century-old Lower Manhattan trading floor.

NYSE Euronext anticipates the deal to close early in the second quarter and add to its 2009 earnings. In 2007, Wombat posted revenue of $28 million, with Ebitda (or earnings before interest, taxes, depreciation and amortization) margins in excess of 35%.

The NYSE and competitor Nasdaq Stock Market Inc. have been working to expand their data-management businesses as they have become publicly owned companies intent on profit growth. Media companies such as Bloomberg LP are also massive players in distributing market data from exchanges.

Source http://online.wsj.com/article/SB120036395136890211.html?mod=googlenews_wsj