CME Group, the derivatives exchange, has acquired a 90% stake in Dow Jones Indexes for $675m, after the two firms signed a definitive agreement.
The transaction is due to be finalised during the first quarter of this year, pending approval by regulators and completion of closing conditions.
CME Group executive chairman Terry Duffy says: "Joining the resources and expertise of one of the world's leading marketplaces for equity index derivatives trading with a premier index provider is an exciting next step that will allow us to expand our index and market data offerings as well as to fuel growth opportunities in our equity index complex."
While Dow Jones & Company will bring its indices business, valued at $675m, to the partnership, CME Group will offer certain market data services, valued at $607.5m.
The joint venture will also raise around $613m in third party debt which will be used to pay the $607.5m distribution to Dow Jones.
The new index services will retain the Dow Jones name and the ownership of the Dow Jones brand stays with Dow Jones.
Dow Jones Indexes includes the Dow Jones Industrial Average and around 130,000 index properties.
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