NEW YORK (TheStreet) -- Intercontinental Exchange (ICE) , the network of regulated exchanges and clearing houses for financial and commodity markets, agreed to acquire SuperDerivatives, an Israeli financial technology group, as it seeks to penetrate the lucrative information market, the Financial Times reports.
ICE is expected to pay $350 million in cash for the Tel Aviv based business and a deal could be announced as early as this week, sources told the Times.
SuperDerivatives provides data and analytics on over-the-counter derivatives but also has a chat platform similar to the one used on Bloomberg terminals.
ICE has long wanted to crack the market for providing high-tech information terminals and has recently been under growing pressure to do so as Bloomberg and other financial information providers push into its core markets, the Times said.
Shares of Intercontinental Exchange closed at $185.62 yesterday.
TheStreet Ratings team rates INTERCONTINENTAL EXCHANGE as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTERCONTINENTAL EXCHANGE (ICE) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."