Intercontinental Exchange to Sell 9.85% Stake in Euroclear for EUR709M

Intercontinental Exchange, Inc. (ICE) shares gained 1.8% in Monday’s pre-market trading session after the company inked a deal to sell its 9.85% stake in Euroclear Holding SA/NV to Silver Lake for EUR709 million.

Markedly, shares of Intercontinental Exchange, the leading operator of global exchanges, clearing houses, data, and listing services, have jumped 31.4% over the past year. (See Intercontinental Exchange stock charts on TipRanks)

Based in Brussels, Belgium, Euroclear is a leading European and global financial market infrastructure company providing post-trade security settlement, custody, collateral management, fund management, and data services.

Euroclear connects over 2,000 financial institutions across 50 different markets and settles transactions in 50 currencies. Notably, it had assets worth €35.2 trillion under its custody and settled 284 million transactions over the past year ended June 2021.

On becoming a shareholder of Euroclear, global technology investment firm Silver Lake said that it will request for a representative of Silver Lake to join the Board of Euroclear Holding SA/NV.

The deal is expected to close by the first half of 2022, subject to certain regulatory approvals.

Intercontinental Exchange CEO Jeffrey C. Sprecher commented, “We have great respect for Euroclear and its leadership team, have seen the critical services and sustainable infrastructure it provides to our industry, and it has been a successful investment for ICE. “

He further added, “Going forward, Euroclear will have an outstanding long-term partner and shareholder in Silver Lake with its deep knowledge and experience in financial and technology investments.”

Deutsche Bank analyst Brian Bedell recently increased the price target on Intercontinental Exchange to $140.00 (8.2% upside potential) from $135.00 and reiterated a Buy rating.

Overall, the stock has a Strong Buy consensus rating based on 7 Buys and 1 Hold. The average Intercontinental Exchange price target of $139.29 implies 7.7% upside potential from current levels.