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FT Partners Advises Automated Trading Desk on $680 Million Sale to Citigroup

Overview of Transaction
  • On July 2, 2007, Automated Trading Desk, Inc. (ATD) announced its sale to Citigroup (NYSE: C) for a combination of cash and stock valued at approximately $680 million
  • The acquisition allows Citigroup to gain traction in the fast growing automated trading market, including equities and options
  • In 2006, ATD accounted for approximately 6% of the trading volume of both the NYSE and NASDAQ
Significance of Transaction
  • The acquisition of ATD by Citigroup changes the global landscape for order execution at sell-side firms and significantly increases Citigroup's market share in trading US equities
  • Competing sell-side firms will be forced to evaluate their trading technology platforms and may force other firms to follow suit
  • Citigroup can leverage ATD's strong technological expertise to ensure best execution prices, and realize significant time and cost savings
  • Award winning transaction recognized as Computer and IT Deal of the Year (Above $100 mm), Financial Services Deal of the Year by the M&A Advisor
FT Partners' Role
  • FT Partners acted as sole strategic and financial advisor to ATD and its Board of Directors
  • FT Partners also provided a fairness opinion to ATD's Board of Directors
  • Provided executive level negotiations on pricing and complex contract and transaction issues