Wayne,
PA – June 3, 2008 – Internet Capital
Group, Inc. (Nasdaq: ICGE) today announced that its partner
company, Creditex Group Inc., has entered into a definitive
merger agreement under which it will be acquired by IntercontinentalExchange,
Inc. (NYSE: ICE), a leading operator of global derivatives
exchanges and over-the-counter (OTC) markets. The closing
of the transaction is subject to a number of conditions and
is expected to occur during the late third quarter of 2008.
The total purchase price to be paid to Creditex stockholders
in the merger is $625 million, plus a working capital adjustment
to be finalized at closing. ICG will receive its portion of
the purchase price, which is expected to be approximately
$85 million, in shares of ICE common stock. The value of the
merger consideration received by ICG may fluctuate based on
the price of ICE’s stock. The historical carrying value
of ICG’s ownership stake in Creditex, which it acquired
in November 2006, is approximately $25 million. ICG does not
expect any income tax expense associated with this transaction.
“This merger is a testament to the strength of Creditex’s
brand and dedicated team, and it provides significant value
to ICG and its stockholders,” said Doug Alexander, Managing
Director at Internet Capital Group. “We are proud of
our success with Creditex. We see this event as a prime demonstration
of ICG’s ability to acquire good companies, build them
into market leaders and capture the value ultimately created.”
Creditex is a credit market leader and innovator in the execution
and processing of credit default swaps (CDS) with markets
spanning the US, Europe and Asia. Creditex is prominent in
the most liquid segments of the CDS market, including CDS
indexes, single-names and standardized tranches. |
