Summary

Other Scenarios:

Buyer: CME Group Inc. (CME) Last Price: 291.59 Market Cap.: 19.50B
Target: NASDAQ OMX Group, Inc. (NDAQ) Last Price: 26.00 Market Cap.: 4.60B

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Business and Public Services   611
Business Services   228
Professional Services   123
Marketing Communications and Advertising Services   40
Consumer 895
Media 140
Electronic Media 63
Consumer Content   45
Professional Content 17
Finance 1,130
Investment 163
Securities Sales and Trading 47
Custody, Clearing, and Settlement 5
Research   0
Securities Exchanges and ECNs 7
Technology   806
Software   248
Industry-Specific   81
Finance   17

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Sample Products in Similar Lines of Business

Sample Products in Complementary Lines of Business
Buyer (Total: 9)
  • CME Globex
  • The Chicago Board of Trade (CBOT)
  • Commodity Exchange, Inc. (COMEX)
  • New York Mercantile Exchange, Inc. (NYMEX)
Target (Total: 17)
  • NASDAQ OMX First North
  • NASDAQ OMX Baltic
  • NASDAQ OMX PSX
  • NASDAQ OMX Commodities
Buyer
  • CME Market Data Services
  • Dow Jones Indexes
  • CME Clearing
  • CME Clearing Europe
Target
  • Shareholder.com
  • GlobeNewswire
  • Mutual Fund Quotation Service ("MFQS")
  • RapiData

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 2)
  • The McGraw-Hill Companies, Inc. (MHP)
  • BBA
Target (Total: 5)
  • EDGAR Online, Inc. (EDGR)
  • Qlik Technologies Inc (QLIK)
  • CoreSite Realty Corp (COR)
  • Fabege AB (FBGBY)
Buyer (Total: 2)
  • Icap PLC (IAPLY)
  • Bursa Malaysia Bhd (BSAMF)
Target (Total: 8)
  • The Tokyo Commodity Exchange
  • Singapore Exchange Limited
  • Hong Kong Exchanges and Clearing Ltd (HKXCY)
  • SIX Group

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 2,570 2,395
Revenue Per Employee 1,308,332.0 1,403,428.0
Total Revenue 736.5 839.0
Total Expenses 346.1 696.0
Other Revenue 17.2 n/a
Cost of Revenue 24.0 417.0
SG&A Expense 192.5 232.0
Research & Development n/a n/a
Other Operating Expense 63.4 n/a
Operating Income 390.4 143.0
Unusual Income n/a 19.0
LT Debt to Capital 8.9 29.4
Fwd P/E 15.88 9.45
Fwd P/Rev 5.68 2.62
Book Value 21,552.0 4,976.0
Curr Portion of LTD/Cap Lease n/a 45.0

Individual Company Summary

Focused

Buyer

Focused (): Finance > Investment > Securities Sales and Trading > Securities Exchanges and ECNs > Securities Exchanges

Target

Focused (): Finance > Investment > Securities Sales and Trading > Securities Exchanges and ECNs > Securities Exchanges

Business Description

Buyer

CME Group Inc. (CME Group) offers a range of products, including those based on interest rates, equities, foreign exchange, commodities, energy and metals. CME Group also offers clearing services for cleared over-the-counter derivatives, including credit default swaps and interest rate swaps. Trades are executed through CME Group?s electronic trading platform, open outcry and privately negotiated transactions. Through its clearing house, CME Group offers clearing, settlement and guarantees for all products cleared through the exchange. Index Services creates, maintains and licenses Dow Jones indexes. It offers a range of products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. Finally, it offers a range of market data services, including live quotes, delayed quotes, market reports and a historical data service and index services.

Target

The NASDAQ OMX Group, Inc. is a global exchange group that delivers trading, exchange technology, securities listing, and public company services across six continents. The Company?s offerings include trading across multiple asset classes, market data products, financial indexes, capital formation solutions, financial services and market technology products and services. It operates in three segments: Market Services, Issuer Services and Market Technology. In the United States, it operates The NASDAQ Stock Market, a registered national securities exchange. In addition, in the United States, it operates a second cash equities trading market, two options markets, a futures market and a derivatives clearinghouse. In Europe, it operates exchanges in Stockholm (Sweden), Copenhagen (Denmark), Helsinki (Finland), and Iceland as NASDAQ OMX Nordic and exchanges in Tallinn (Estonia), Riga (Latvia) and Vilnius (Lithuania) as NASDAQ OMX Baltic.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 97.12 49.16
Operating Margin % 61.61 19.74
Quick Ratio 0.14 0.18
Current Ratio 1.14 1.09
Coverage Ratio n/a n/a
Total Assets 40,758.7 14,091.0
Return on Equity % 33.67 30.87
Return on Assets % 17.81 10.9
Cash+ ST Inv. Per Share 16.44 4.36
Total Debt 2,106.8 2,117.0
Total Debt to Equity % 9.78 42.54
Total Debt to Tangible Equity % n/a n/a
Debt to Asset % 5.17 15.02

Product Summary

Sector Buyer Target
Business and Public Services  
Business Services  
Professional Services
Includes accounting, advertising, consulting, legal, and printing services.
  
Consumer
Media
Electronic Media
The Electronic Media sector focuses on content delivered electronically, primarily over the Internet, and comprises both online publishing intended for end users, and services providing data feeds for other electronic publishers and Web sites. (The online presences of companies delivering content primarily via Television, Radio, and Print are generally not included.) Does not include trade name delivered via mobile devices, if this content is also offered primarily via the internet.
Finance
Investment
Securities Sales and Trading
The Securities Sales and Trading subsector consists primarily of services provided by investment firms acting as agents between a buyer and seller of securities, usually charging a commission, and are registered with the exchange where the securities are traded. Securities exchanges and ECNs are also included.
Technology  
Software  
Industry-Specific
Software that has functionality specific to a vertical industry.
  

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Product Details

Sector Buyer Target
Business and Public Services  
Business Services  
Professional Services  
Marketing Communications and Advertising Services  
Marketing Specialists  
Public Relations Agencies
Companies which create and implement public relations campaigns (e.g. providing news releases and other communications, and event organizing), designed to promote the image and interests of their clients.

Target Products:

  • Shareholder.com
  
Consumer
Media
Electronic Media
Consumer Content  
Information and News  
News
Syndication of news to various websites.

Target Products:

  • GlobeNewswire
  
Professional Content
Financial Data
Execution and Quote Platforms
Offered to large-volume trading professionals, including active trader data, such as real-time quotes, advanced analytics, and access to trade execution.

Buyer Products:

  • CME Market Data Services

Target Products:

  • Mutual Fund Quotation Service ("MFQS")
Financial Reference Data
Financial market reference data offered to financial institutions as well as third party distributors typically aggregated in a data feed, including pricing, financial ratios, SEC filings, valuation metrics, and other data.

Buyer Products:

  • Dow Jones Indexes

Target Products:

  • RapiData
Finance
Investment
Securities Sales and Trading
Custody, Clearing, and Settlement
Custody, Clearing, and Settlement includes a range of support services offered to financial institutions. Custody is the holding and administering of securities on behalf of third parties. A Clearing House is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions that may be executed on a futures or securities exchange. Clearing Houses act as intermediaries and reconciles orders between transacting parties (a.k.a. "member firms or "clearing participants"). Settlement services refer to the accounting of securities that are transferred against payment, typically when parties are not members of the same clearing firm. Mutual funds, investment advisors, banks, and insurance companies often outsource these operations to companies placed here. Companies that offer prime brokerage services are included here.

Buyer Products:

  • CME Clearing
  • CME Clearing Europe

Target Products:

  • International Derivatives Clearing Group (IDCG)
  • NASDAQ OMX Commodities Clearing Company(NOCC)
  • International Derivatives Clearinghouse(IDCH)
  • North American Energy Credit and Clearing Corp (NECC)
  • NASDAQ OMX Nordic
Research  
Securities Research
Services provided by investment firms that involve the analysis of particular securities, commodities and industries.

Target Products:

  • The Nasdaq OMX Group, Inc.
  
Securities Exchanges and ECNs
Alternative Trading Systems
Alternative Trading Systems are SEC approved non exchange trading venues for allowing alternative means of accessing liquidity. Rule 300 (a) of the SEC's Regulation ATS defines it this way: Any organization, association, person, group of persons, or system that constitutes, maintains, or provides a market place or facilities for brining together purchasers and sellers of securities or for otherwise prerforming with respect to securities the functions commonly performed by a stock exchange with the meaning of Rule 3b-16 and that does not set rules governing the conduct of subscribers other than the conduct of such subscribers' trading on such organization, association, person, group of persons, or system; or discipline subscribers other than by exclusion from trading. ECN's (Electronic Communication Networks), Call markets, matching systems, crossing networks and Dark pools are included here.

Buyer Products:

  • CME Globex

Target Products:

  • NASDAQ OMX First North
Securities Exchanges
Companies placed here operate a physical or electronic securities exchange which is an entity that provides the ability for brokers and traders to trade equities, and other securities. Securities exchanges may also provide facilities for the issue and redemption of securities as well as other financial instruments and other capital events including the payment of income and dividends. The securities traded on an exchange include: shares issued by companies, unit trusts, derivative products, pooled investment products, commodities, and fixed income instruments.

Buyer Products:

  • The Chicago Board of Trade (CBOT)
  • Commodity Exchange, Inc. (COMEX)
  • New York Mercantile Exchange, Inc. (NYMEX)
  • Chicago Mercantile Exchange Inc.

Target Products:

  • NASDAQ OMX Baltic
  • NASDAQ OMX PSX
  • NASDAQ OMX Commodities
  • NASDAQ OMX PHLX
  • NASDAQ OMX BX
  • NASDAQ OMX Nordic
  • The Nasdaq OMX Group, Inc.
Technology  
Software  
Industry-Specific  
Finance  
Investment Management/Brokerage
Software designed specifically for investment-related financial firms.

Target Products:

  • FTEN, Inc. - Real-Time Risk Management Solutions
  

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Relationship Details

Key Competitors

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  NYSE Euronext n/a 7,582.280 11.75 10.14 1.67 2.65 n/a
Bolsa Mexicana de Valores SAB de CV n/a n/a n/a n/a n/a n/a n/a
The Depository Trust & Clearing Corporation n/a n/a n/a n/a n/a n/a n/a
Buyer
  IntercontinentalExchange, Inc. n/a 9,905.148 19.56 16.85 7.46 6.69 27.20
NYSE Euronext n/a 7,582.280 11.75 10.14 1.67 2.65 n/a
MSCI Inc. n/a 4,196.997 20.38 18.12 3.73 4.45 n/a
Moog Inc. n/a 2,020.298 14.63 n/a 0.85 n/a 6.86
ELX Futures, L.P. n/a n/a n/a n/a n/a n/a n/a
Bolsa Mexicana de Valores SAB de CV n/a n/a n/a n/a n/a n/a n/a
The Depository Trust & Clearing Corporation n/a n/a n/a n/a n/a n/a n/a
Target
  NYSE Euronext n/a 7,582.280 11.75 10.14 1.67 2.65 n/a
TMX Group Inc n/a 3,117.187 13.00 n/a 4.58 n/a n/a
CBOE Holdings, Inc n/a 2,540.911 11.00 15.76 2.90 4.47 13.09
Track Data Corporation n/a 8.375 12.34 n/a 0.27 n/a 0.36
Onstream Media Corp n/a 7.856 n/a n/a 0.44 n/a n/a
BATS Global Markets, Inc. n/a n/a n/a n/a n/a n/a n/a
SIX Group n/a n/a n/a n/a n/a n/a n/a
Direct Edge ECN LLC n/a n/a n/a n/a n/a n/a n/a
MTS Group n/a n/a n/a n/a n/a n/a n/a
Tokyo Stock Exchange, Inc. n/a n/a n/a n/a n/a n/a n/a
Deutsche Boerse AG n/a n/a n/a 10.11 n/a n/a n/a
Government - Netherlands n/a n/a n/a n/a n/a n/a n/a
London Stock Exchange Group PLC n/a n/a n/a n/a n/a n/a n/a
Bolsa Mexicana de Valores SAB de CV n/a n/a n/a n/a n/a n/a n/a
The Depository Trust & Clearing Corporation n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Dependent Suppliers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  The McGraw-Hill Companies, Inc. n/a 13,715.176 41.92 13.90 4.89 2.11 n/a
BBA n/a n/a n/a n/a n/a n/a n/a
Target
  EDGAR Online, Inc. 3.00% 19.688 n/a n/a 0.63 n/a 5.09
Qlik Technologies Inc n/a 2,469.147 430.89 85.14 8.40 6.36 15.01
CoreSite Realty Corp n/a 421.688 n/a 15.41 2.55 2.11 3.07
Fabege AB n/a n/a n/a n/a n/a n/a n/a
Proact It Group AB n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Key Customers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Icap PLC n/a n/a n/a 12.34 n/a n/a n/a
Bursa Malaysia Bhd n/a n/a n/a n/a n/a n/a n/a
Target
  The Tokyo Commodity Exchange n/a n/a n/a n/a n/a n/a n/a
Singapore Exchange Limited n/a n/a n/a n/a n/a n/a n/a
Hong Kong Exchanges and Clearing Ltd n/a n/a n/a n/a n/a n/a n/a
SIX Group n/a n/a n/a n/a n/a n/a n/a
Bolsa de Valores de Colombia n/a n/a n/a n/a n/a n/a n/a
The Egyptian Exchange n/a n/a n/a n/a n/a n/a n/a
Plus Markets Group PLC n/a n/a n/a n/a n/a n/a n/a
ASX Limited n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Key Partners

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  News Corp n/a 52,143.826 10.05 14.46 0.89 1.53 12.54
The McGraw-Hill Companies, Inc. n/a 13,715.176 41.92 13.90 4.89 2.11 n/a
NASDAQ OMX Group, Inc. n/a 4,604.015 11.92 9.45 1.34 2.62 n/a
Corn Products International, Inc. n/a 4,364.644 10.56 11.26 0.70 0.65 3.65
Interactive Brokers Group, Inc. n/a 711.279 11.08 10.71 0.49 0.50 1.24
Bursa Malaysia Bhd n/a n/a n/a n/a n/a n/a n/a
Misys PLC n/a n/a n/a n/a n/a n/a n/a
Icap PLC n/a n/a n/a 12.34 n/a n/a n/a
IMAREX ASA n/a n/a n/a n/a n/a n/a n/a
Green Exchange Holdings LLC n/a n/a n/a n/a n/a n/a n/a
Dubai Mercantile Exchange Holding Limited n/a n/a n/a n/a n/a n/a n/a
BM&F Bovespa SA Bolsa de Valores, Mercadorias e Futuros n/a n/a n/a n/a n/a n/a n/a
Nikkei Inc. n/a n/a n/a n/a n/a n/a n/a
BBA n/a n/a n/a n/a n/a n/a n/a
Target
  CME Group Inc. n/a 19,496.524 10.81 15.88 5.94 5.68 n/a
IntercontinentalExchange, Inc. n/a 9,905.148 19.56 16.85 7.46 6.69 27.20
CBOE Holdings, Inc n/a 2,540.911 11.00 15.76 2.90 4.47 13.09
EDGAR Online, Inc. n/a 19.688 n/a n/a 0.63 n/a 5.09
Government - Netherlands n/a n/a n/a n/a n/a n/a n/a
Know It AB n/a n/a n/a n/a n/a n/a n/a
Bolsa de Valores de Colombia n/a n/a n/a n/a n/a n/a n/a
Investor AB n/a n/a n/a n/a n/a n/a n/a
Borse Dubai n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 3,187.8 3,440.0 6,627.8
Other Revenue 92.8 n/a 92.8
Total Revenue 3,280.6 3,440.0 6,720.6
Cost of Revenue 94.4 1,749.0 1,843.4
SG&A Expense 764.2 847.0 1,611.2
Depreciation & Amortization 260.5 109.0 369.5
Interest Expense n/a n/a n/a
Other Operating Expense 140.4 n/a 140.4
Unusual Expense (Income) n/a 56.0 56.0
Total Expenses 1,259.5 2,761.0 4,020.5
Operating Income 2,021.1 679.0 2,700.1
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -37.7 -27.0 -64.7
Other, Net n/a n/a n/a
Income Before Taxes 1,936.5 574.0 2,510.5
Income Taxes 122.1 190.0 312.1
Income After Taxes 1,814.4 384.0 2,198.4
Minority Interest (IS) -0.5 4.0 3.5
Net Income - Excl. Xord. Items 1,813.9 388.0 2,201.9
Net Income - Incl. Xord. Items 1,813.9 388.0 2,201.9
Income Avail. to Common 1,813.9 388.0 2,201.9
Share Items
Basic Avg. Shares Outstanding 66.1 175.0 241.1
Basic EPS - Excl. Xord. Items 27.29 2.20 9.13
Basic EPS - Incl. Xord. Items 27.29 2.20 9.13
Full Dilution Adjustment n/a n/a n/a
Fully Diluted Shares Outstanding 66.3 180.0 246.3
F.D. EPS - Excl. Xord. Items 27.21 2.15 8.94
F.D. EPS - Incl. Xord. Items 27.21 2.15 8.94
Dividends Per Common Share 4.20 n/a 4.20
Balance Sheet
Assets
Cash and Equivalents 1,042.3 506.0 1,548.3
ST Investments 47.6 279.0 326.6
Accounts Receivable 289.4 308.0 597.4
Inventory n/a n/a n/a
Other Current Assets 9,566.5 5,480.0 15,046.5
Current Assets 10,945.8 6,573.0 17,518.8
PPE 1,332.2 n/a 1,332.2
Accum D&A -535.2 n/a -535.2
PPE, Net 821.9 193.0 1,014.9
Goodwill & Intangibles 28,337.3 6,709.0 35,046.3
Long Term Investments n/a 27.0 27.0
Other Assets n/a n/a n/a
Other LT Assets 653.7 616.0 1,269.7
Total Assets 40,758.7 14,091.0 54,849.7
Liabilities
Accounts Payable 31.1 106.0 137.1
Payable/Accrued n/a 164.0 164.0
Accrued Expenses n/a 132.0 132.0
ST Debt n/a n/a n/a
Curr Port of LTD & Cap Lease Oblg n/a 45.0 45.0
Other (Current) Liabilities 9,584.1 5,583.0 15,167.1
Current Liab. 9,615.2 6,030.0 15,645.2
LT Debt 2,106.8 2,072.0 4,178.8
Total LT Debt 2,106.8 2,072.0 4,178.8
Minority Interest (BS) 70.3 10.0 80.3
Deferred Taxes 7,226.8 670.0 7,896.8
Other LT Liab. 187.6 333.0 520.6
Total Liabilities 19,206.7 9,115.0 28,321.7
Shareholders Equity
Common Stock 0.7 2.0 2.7
Additional Paid in Capital 17,293.1 3,793.0 21,086.1
Retained Earnings 3,248.8 2,391.0 5,639.8
Treasure Stock n/a -860.0 -860.0
Other Equity 21,552.0 -350.0 21,202.0
Total Equity 21,552.0 4,976.0 26,528.0
Total Liab. & Equity 40,758.7 14,091.0 54,849.7
Shares Outstanding 66.4 177.1 243.5
Cash Flow
Operating Cash Flow
CF Net Income 1,067.7 405.0 1,472.7
CF Depreciation 95.1 108.0 203.1
CF Amortization 99.2 n/a 99.2
CF Deferred Taxes -130.8 -29.0 -159.8
Other Non-Cash Items 44.5 61.0 105.5
Change in Working Capital -166.1 -1.0 -167.1
Total Cash From Operating Activities 999.8 607.0 1,606.8
Investing Cash Flow (not calculated)
Capital Expenditures -129.4 -61.0 -190.4
Other Investing Cash Flows 0.9 -59.0 -58.1
Total Cash From Investing Activities -111.0 -120.0 -231.0
Financing Cash Flow (not calculated)
Dividends Paid -280.6 n/a -280.6
Purchase Or Sale of Stock -215.2 14.0 -201.2
Purchase and Retirement of Debt n/a -155.0 -155.0
Other Financing Cash Flow 1.6 -7.0 -5.4
Total Cash From Financing Activities -914.7 -132.0 -1,046.7
Exchange Rate Effects n/a -3.0 -3.0
Net Change in Cash -25.9 352.0 326.1
Cash Taxes Paid 612.1 126.0 738.1
Cash Interest Paid 111.9 114.0 225.9