Interactive Data Corporation, a provider of financial market data, analytics and related solutions, has signed an agreement to acquire 7ticks, LLC, a provider of electronic trading networks and managed services, for $30 million in cash. The transaction is expected to be completed in early 2010.

In a prepared statement, Interactive Data said the acquisition represents an important element in the company's "strategy to address the latency sensitive trading needs of its institutional customers." The acquistion will accelerate Interactive Data’s plans to increase the flexibility, agility and resiliency of its network infrastructure, thereby supporting a broader range of high-quality direct exchange access and consolidated datafeed services, according to Interactive Data.

Chicago-based 7ticks specializes in providing proprietary trading groups, clearing firms, global investment banks, brokers, market makers, hedge funds and independent software vendors with direct exchange access, proximity hosting, and support services for facilitating ultra low latency electronic trading of North American derivatives, options and commodities securities. The firm has hosting facilities in Chicago, the New York area, London and Frankfurt.

“Increasing our penetration in the electronic trading sector is one of our top long-term strategic priorities, and we believe that acquiring 7ticks will enable us to make significant progress in this area,” said Ray D’Arcy, president and CEO of Interactive Data. “Over a relatively short period of time, 7ticks has built a world-class, ultra low latency network infrastructure that is attracting a growing number of leading-edge institutional customers. We are excited by the opportunities we see to elevate our value proposition to our global customer base by combining our low latency consolidated market data services with ultra low latency managed connectivity from 7ticks.”

Services from 7ticks will be marketed as Interactive Data 7ticks following the acquisition’s completion. 7ticks said it is in the process of increasing its U.S. equities coverage and has plans to expand further into Asia and Europe in the coming twelve months.

“We are extremely pleased to join forces with Interactive Data,” stated Joe Bigane, managing director for 7ticks. “During the past few years, we have generated significant momentum in the marketplace and we are well positioned to build on this initial success. With Interactive Data’s extensive range of complementary world-class offerings, strong customer relationships, extensive global distribution channels and financial resources, we believe that we can accelerate our growth as we expand our customer base and build out our infrastructure.”

Interactive Data said it expects to retain all of 7ticks’ 42 full-time employees, including its leadership team. The 7ticks business will be operated as part of Interactive Data’s newly formed Real-Time Market Data and Trading Solutions Group. This new division was launched today and will be led by Jeffrey Banker, most recently Interactive Data’s managing director of strategic market development.

This article can also be found at Securities Industry News.

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