IntercontinentalExchange Inc. (ICE) announced the completion of its acquisition of Climate Exchange plc (CLE.L, CXCHF.PK, CXCHY.PK), an operator of global emissions markets.
On April 20, 2010, the company agreed on terms to purchase UK-listed emissions exchange operator Climate Exchange for about US$604 million or GBP 395 million.
ICE expects to recognize transaction costs relating to the Climate Exchange acquisition of around $1 million to $2 million in the second quarter and $6 million to $7 million in the third quarter of 2010.
The company said the subsequent strengthening of the dollar reduced the value of the hedge and ICE would recognize a loss of $14 million in the second quarter of 2010 below the operating income line in "other expense." This charge would be included in GAAP earnings and excluded from non-GAAP earnings.
As announced earlier, ICE anticipates the transaction to be accretive to earnings in 2011, with negligible dilution for the remainder of 2010.
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