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NDAQ » Topics » Note 7. Integration Plan

This excerpt taken from the NDAQ 8-K filed Aug 1, 2008.

Note 7. Integration Plan

NASDAQ OMX expects that in the period beginning twelve months following consummation of the PHLX acquisition, this acquisition will be accretive to stockholders, primarily as a result of technology cost savings and other synergies as follows:

 

•  

Both parties believe the acquisition will create substantial value for shareholders, with net pre-tax annual synergies estimated at $51 million. Of this amount, $57 million constitutes estimated cost synergies and $(6) million estimated revenue synergies;

 

•  

Cost synergies will be realized through the rationalization of IT systems and data centers, rationalization of non-IT functions, and reduced capital and procurement expenditure; and

 

•  

Negative Revenue synergies will be realized due to the discontinuation of certain business units.

 

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This excerpt taken from the NDAQ 8-K filed May 2, 2008.

Note 8. Integration Plan

NASDAQ OMX expects that in the period beginning twelve months following consummation of the OMX combination, this combination will be accretive to stockholders, primarily as a result of technology cost savings and other synergies as follows:

 

  •  

Both parties believe the combination will create substantial value for shareholders, with total pre-tax annual synergies estimated at $150 million. Of this amount, $100 million constitutes estimated cost synergies and $50 million estimated revenue synergies;

 

  •  

Cost synergies will be realized through the rationalization of IT systems and data centers, rationalization of non-IT functions, and reduced capital and procurement expenditure;

 

  •  

Revenue synergies will be achieved through the creation of deeper liquidity pools, increased cross-border trading, increased international listings, packaged data products and enhanced technology sales; and

 

  •  

Total pre-tax restructuring and revenue investment costs are estimated at $150 million which will be incurred in the two years following completion of the Transactions.

 

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This excerpt taken from the NDAQ 8-K filed Jan 27, 2006.

Note 4. Integration Plan

 

Nasdaq expects that in the period beginning twelve months following consummation of the Norway acquisition, this acquisition will be accretive to stockholders, primarily as a result of technology cost savings and other synergies as follows:

 

  •   The cost to operate the combined platform will be less than operating the existing Nasdaq and Brut ECN platforms. Also, by migrating to a single platform, Nasdaq will achieve cost savings in clearing and settlement expenses as more trades will be executed on the Nasdaq Market Center versus routed through Nasdaq’s broker-dealer, Brut.

 

  •   Nasdaq will also achieve cost savings on certain occupancy and compensation and benefit costs due to the relocation of Norway employees to Nasdaq facilities, headcount reductions and consolidation of facilities, including data centers.

 

  •   Nasdaq will gain additional market data revenues by migrating INET trade reporting activity from The National Stock Exchange (“NSX”) to Nasdaq. Nasdaq will also no longer pay NSX membership fees.

 

EXCERPTS ON THIS PAGE:

8-K
Aug 1, 2008
8-K
May 2, 2008
8-K
Jan 27, 2006

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