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Thomson Reuters buys FX Alliance for $625 mln

Global news and information provider Thomson Reuters (NYSE:TRI) Monday agreed to buy electronic foreign exchange platform FX Alliance (NYSE:FX), known by its trade name FXall, for about $625 million in cash.

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Global news and information provider Thomson Reuters (NYSE:TRI) Monday agreed to buy electronic foreign exchange platform FX Alliance (NYSE:FX), known by its trade name FXall, for about $625 million in cash.

Thomson Reuters will offer $22 per share for FXall, a premium of about 40 per cent over Friday's close of $15.70.

"Thomson Reuters and FXall have established leading positions in complementary aspects of electronic FX trading," said Thomson Reuters' managing director of Marketplaces Abel Clark.

"This combination will enable us to provide our customers with integrated management of trades though the entire lifecycle, delivering the benefits of a more streamlined trading process and more efficient execution."

FXall chairman and CEO Phil Weisberg added: "FXall will now have a bigger stage from which to drive greater innovation and growth, with access to Thomson Reuters global reach, standing in the FX community and focus on client solutions.

"The combined platform allows us to deliver greater value to our clients and employees, building upon the foundation that we have established over the past twelve years. In addition, we believe this is a compelling transaction for our shareholders."

The deal repositions Thomson Reuters to take advantage of the broad regulatory push to force more of the over-the-counter markets including foreign exchange derivatives onto electronic platforms.

FXall provides around-the-clock access to forex markets five days a week, listed on the New York Stock Exchange in February this year at $12 per share, and saw its stock rise as much as 20 percent on its market debut.

The forex market is one of the few areas of trading which has not seen as big a drop off in activity during the financial crisis.

Last week FXall announced record total average daily trading volumes of $98.6 billion in June, a 10 per cent increase on both the previous month and June 2011. Total average daily volume for the second quarter was also a record, rising 8 per cent on the same quarter last year to $92.4 billion.

The company's largest shareholder, Technology Crossover Ventures, as well as its chairman and chief executive Phil Weisberg and chief financial officer John Cooley - who own around 32.5 per cent of stock - have already agreed to tender their holdings, the company said.

Thomson Reuters said it expected the deal to close in the third quarter.

Quick facts: Thomson Reuters

Price: 78.46 USD

NYSE:TRI
Market: NYSE
Market Cap: $38.97 billion
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