Sooner or later, NYSE Euronext
Living up to the rumor-mill chatter that began circulating last week, NYSE is buying the American Stock Exchange in a $260 million stock deal. Amex stakeholders will also receive the proceeds -- in NYSE stock -- of the eventual sale of the exchange's Manhattan headquarters.
The deal is a steal, especially when you consider that Amex generated operating revenues of $178 million last year and larger exchanges, such as the NYSE and Nasdaq
Acquiring the exchange will fatten up NYSE's stock-options business, more than double the number of exchange-traded funds, and grow its closed-end funds by 50%. Those are pretty much the things the Amex is good for these days. Sure, there are a few notable stocks trading on the Amex -- including Seaboard
The Amex is as old-school as they come. It lacks both the technology that made Archipelago Holdings such a transformative NYSE purchase two years ago and the global extension that last year's buy of Europe's Euronext gave the NYSE. Still, the NYSE will be landing a needy neighbor that will help it fill up its trading floor and actually be accretive to the bottom line in a couple of years.
The move also shows that the NYSE is still packing its acquisitive appetite, long after former CEO John Thain moved on to head up Merrill Lynch
Easy there, big fella. Take the time to digest your meal this time.
NYSE Euronext has more than tripled since being recommended to Rule Breakers newsletter subscribers three years ago. It was Archipelago Holdings at the time. If you want to read up on all of the market-thumping growth stocks, here's a free 30-day pass; check it out.
Longtime Fool contributor Rick Munarriz is a fan of voracious appetites. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Motley Fool owns shares of SPDRs and has a disclosure policy.