Shares of MarketAxess Holdings surged 29.79% in Thursday morning trading, climbing $37.45 to $163.18, after Intercontinental Exchange announced a definitive agreement to acquire the electronic fixed-income trading platform in an all-cash deal aimed at expanding ICE’s presence in bond markets.

Under the terms of the agreement, ICE will pay $167 per share in cash for all outstanding shares of MarketAxess, representing a 33% premium over the company’s closing price on July 29, the day before the deal was announced. The transaction values MarketAxess at an equity value of approximately $6.0 billion and a total enterprise value of roughly $5.7 billion, or about 10.6 times MarketAxess’s trailing 12-month earnings before interest, taxes, depreciation and amortization once expected cost synergies from the deal are fully accounted for.

The acquisition brings together two companies with complementary positions in fixed-income markets. ICE, the parent company of the New York Stock Exchange, has spent years building out infrastructure spanning fixed-income data and analytics, a retail bond marketplace, and global index products, while MarketAxess has established itself as a leading electronic trading platform used by institutional investors to buy and sell corporate bonds and other fixed-income securities. ICE said the combined company will offer a unified platform spanning pre-trade price analytics, electronic execution and post-trade compliance tools for fixed-income traders.

ICE Chair and Chief Executive Jeff Sprecher framed the acquisition as addressing longstanding structural inefficiencies in global bond markets. “Together, we will build the fixed-income ecosystem that investors have always deserved — one that is transparent, efficient, fully connected, and accessible to all,” Sprecher said in a statement announcing the deal.

The global bond market represents an enormous but historically fragmented segment of the financial system, with an estimated $145.1 trillion in outstanding debt globally, according to figures cited in the deal announcement. Despite decades of technological progress in other asset classes, fixed-income trading has remained disproportionately manual and conducted through bilateral, negotiated transactions relative to equities and other more electronically traded markets, a dynamic that has historically resulted in lower transparency, wider bid-ask spreads and higher transaction costs for market participants.

The transaction has received unanimous approval from the boards of directors of both companies and is expected to close in the first half of 2027, subject to approval from MarketAxess shareholders, regulatory clearances and other customary closing conditions. ICE plans to finance the acquisition entirely through newly issued debt, including a mix of bonds, a term loan and commercial paper, rather than issuing new equity. The company said its gross leverage is expected to start at 3.4 times earnings following the deal’s completion, with a target of reducing that figure to 3.0 times or below within 18 to 24 months after closing.

Despite taking on additional debt to fund the acquisition, ICE said it plans to increase its baseline quarterly share repurchase program to $400 million from $350 million, a move the company characterized as underscoring its continued commitment to returning capital to shareholders even while integrating the new acquisition. ICE also said it expects the deal to generate approximately $100 million in annual run-rate cost synergies within three years of closing and to be accretive to the company’s adjusted earnings per share during the first full year following the transaction’s completion.

BofA Securities is serving as financial adviser to ICE on the transaction, while J.P. Morgan Securities is advising MarketAxess.

The acquisition announcement came alongside ICE’s second-quarter earnings report, which showed the exchange operator posting higher quarterly profit driven by strong trading activity across its business segments. ICE shares rose 1.7% in premarket trading following the combined news. Net income attributable to ICE totaled $958 million, or $1.69 per share, for the three months ended June 30, up from $851 million, or $1.48 per share, during the same period a year earlier. Revenue in ICE’s exchanges segment, its largest source of revenue, rose 3% to $1.46 billion, while its fixed-income and data services segment, through which the company sells subscription-based pricing data for various debt instruments, posted an 8% increase in revenue. Mortgage technology revenue climbed 5% during the quarter.

Sprecher pointed to broader market volatility as a factor supporting demand for ICE’s core products during the quarter. “Against a backdrop of rapid change in global markets, our customers continued to turn to ICE’s regulated markets, trusted data and mission-critical technology to transfer risk,” Sprecher said.

MarketAxess shares had lost nearly 31% of their value over the course of the year prior to Thursday’s acquisition announcement, leaving the company valued at approximately $4.5 billion as of its last close before the deal was revealed, according to data from LSEG. Thursday’s sharp rally effectively erases a significant portion of that decline, reflecting the substantial premium ICE agreed to pay relative to MarketAxess’s depressed trading levels heading into the announcement.

With the deal now formally announced and awaiting the customary regulatory and shareholder approval process, market participants are expected to watch closely for additional details on integration planning and any potential regulatory scrutiny the transaction may face, given the scale of the combined company’s resulting footprint across both electronic trading infrastructure and data services within global fixed-income markets.