WAYNE, Pa. -- November 27, 2006 – Internet Capital Group, Inc. (Nasdaq: ICGE - News) today announced that the merger of its partner company, CreditTrade, Inc., and Creditex Group, Inc. was consummated on November 21, 2006. Immediately following the merger, ICG deployed the cash proceeds that it received for its CreditTrade shares, plus an incremental $9 million of cash, to acquire a 15% interest in Creditex Group. Doug Alexander, Managing Director at ICG, will serve as a director of Creditex Group.
The merger of these two companies positions Creditex Group as one of the largest credit derivatives platform companies in a market that has been growing 100% annually, topping $17 trillion in outstanding notional value in 2005. The combined company will have market-leading positions in the most strategic and rapidly growing sectors: European and North American indices, European and North American structured products and single names and emerging markets. Creditex Group is projected to execute well over $2 trillion in notional credit derivative value in 2006 by providing a comprehensive voice, hybrid and electronic execution platform for the credit derivatives market.
“We are very enthusiastic about our ongoing ownership interest in Creditex and believe it will drive significant value for our shareholders,” said Doug Alexander, Managing Director at Internet Capital Group. ”This merger brings together two strong leaders in the credit derivatives marketplace to create a leading on-demand credit derivatives execution and processing platform uniquely positioned to capture the significant opportunity in this rapidly growing market.”
Creditex Group is projecting 2006 revenues of well over $100 million in 2006, has grown over 50% annually since January, 2004 and is net income positive. |
