(By Balaseshan) News and information provider Thomson Reuters Corp. (NYSE:TRI) said it has agreed to buy forex trading portal FX Alliance Inc. (NYSE:FX) for $22 per share in cash. Following the news, shares of FX jumped 39.17% in premarket.
Thomson Reuters has offered to pay $22 per share for 100% shares of FXall, representing a 40.1% premium over Friday's stock closing price of FXall.
Thomson Reuters would launch a tender offer, which is subject to standard regulatory approvals, for the acquisition in the coming days. The FXall Board has unanimously resolved to recommend that all shareholders tender their shares into the offer.
FXall's largest shareholder Technology Crossover Ventures, chairman and chief executive Phil Weisberg, and Finance Chief John Cooley, who collectively own about 32.5% of FXall's outstanding shares, have each agreed to tender their shares into the offer.
Thomson Reuters, which is a key provider of access to market liquidity and workflow solutions to the inter-bank electronic FX markets, expects the acquisition to close in the third quarter.
FXall, which believe this is a compelling transaction for its shareholders, remains fully committed to ensuring a seamless transition and continued quality of service to its customers.
In connection with the transaction, Barclays is acting as financial advisor to Thomson Reuters and J.P. Morgan is acting as financial advisor to FXall.
TRI closed Friday's regular session down 1.62% at $28.47, while FX ended down 1.13% at $15.70.