ICE to buy MarketAxess in $5.7 billion deal, posts higher quarterly profit

Intercontinental Exchange (ICE.N) said on Thursday it will acquire bond trading platform MarketAxess Holdings (MKTX.O) in a deal valued at $5.7 billion to expand fixed-income offerings.

ICE shares were up 1.7% before the bell, after it also reported higher quarterly profit, boosted by trading activity.

Under the terms of the acquisition, ICE will buy all outstanding shares of the trading platform for $167 each in cash, the exchange operator said, which is a 33% premium to its previous closing price.

MarketAxess shares jumped 28% premarket, after having lost nearly 31% this year.

ICE said the combined entity will offer a single platform for fixed-income traders, combining pre-trade price analytics, electronic execution and post-trade compliance tools.

"Together, we will build the fixed-income ecosystem that investors have always deserved - one that is transparent, efficient, fully connected, and accessible to all," ICE CEO Jeff Sprecher said in a statement.

ICE's results were boosted by volatility from the U.S.-Iran war and shifting interest rate and AI expectations, as investors hedged.

Prolonged conflicts in Ukraine and the Middle East also drove oil-market volatility, fueling growth in ICE's energy segment, though the second quarter saw a 13% revenue drop in the segment.

That hedging pushed interest rates average daily volume up 24% year over year, while agriculture and metals volumes rose .