Wayne,
PA – September 2, 2008 – Internet Capital Group, Inc. (Nasdaq: ICGE) today announced that the sale of its partner company, Creditex Group Inc., to IntercontinentalExchange, Inc. (NYSE: ICE), a leading operator of global derivatives exchanges and over-the-counter (OTC) markets, was consummated on August 29, 2008.
ICG’s portion of the sale proceeds consists of 737,471 shares of ICE common stock, which, based on the stock’s August 29, 2008 closing price, is valued at approximately $64.9 million. At closing, 60,440 of these shares were placed into escrow and, subject to indemnification claims, most of the shares will be released to ICG eighteen months following the closing of the transaction, with the remainder to be released four years after the closing. ICG will record a gain of approximately $35 million on the sale of its stake in Creditex, which it acquired in late 2006, and does not expect any income tax expense in connection with the transaction. The release of any proceeds to ICG from escrow will result in additional gains.
“ICE’s acquisition of Creditex was a terrific outcome for ICG and its stockholders,” said Doug Alexander, Managing Director at Internet Capital Group. “The proceeds from this transaction will provide us with additional resources and flexibility as we continue our mission of acquiring, building and capturing the value created within leading on-demand software and services companies.”
“ICG has been an outstanding partner for Creditex," said Sunil Hirai, Creditex’s Chairman and CEO. “The support and guidance provided by Doug Alexander and the ICG team have played an invaluable role in our growth and the realization of this merger.” |
