Client Focus Success Stories

Direct Edge and BATS Global Markets

Direct Edge and BATS Global Markets merge to create the second largest stock exchange in the U.S., using Intralinks Dealspace™ for Corporate Development.

SituationIn May 2013, the chief executives of Direct Edge and BATS Global Markets met in Lower Manhattan. The meeting, which capped off years of dialogue between the two companies, resulted in an agreement to merge to better serve the needs of their respective members. With greater than 20 percent share of the U.S. equity trading market, the scale of the combined fi rm meant that it would be well-positioned against legacy competitors, such as NASDAQ and the New York Stock Exchange (NYSE).

Months of due diligence followed, as the two fi rms worked out the details of the merger. Massive amounts of information needed to be shared securely between the two fi rms. Security was essential, as any leak of the discussions could compromise the effectiveness of the merger.

62 20%Months to conduct the

due diligenceFirms using the virtual data room Share of the U.S. equity

trading market

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Client Focus Success Stories

Direct Edge and BATS Global Markets

SolutionOn advice of its bankers, Direct Edge turned to Intralinks Dealspace for Corporate Development to establish its confi dential virtual data room. The two fi rms would be able to exchange and review documents in the virtual data room as part of the intensive due diligence process.

Direct Edge wanted to control the due diligence of the deal from start to fi nish. “When you are in the middle of merger discussions, secure and seamless access to sensitive documents is critical,” said Glen Badach, Chief Financial Offi cer of Direct Edge. “Intralinks performed fl awlessly during our due diligence, without a single problem or impediment.”

Direct Edge found it user-friendly to set up and use the confi dential virtual data room, which was accessed by roughly 30 people from six different fi rms. Despite the easy access, security around Intralinks was highly sophisticated. “The thousands of sensitive fi les were not compromised in any way,” continued Badach. “And despite the need for the highest levels of security, no one criticized the safeguards as too onerous. It was not diffi cult to assign permissions or set user names and passwords. Intralinks Dealspace seemed to be right-sized in terms of security.”

BenefitsThe process was quick. The virtual data room was opened in Intralinks on June 27, and the merger was announced on Aug. 26. “Intralinks Dealspace was a highly effective tool for managing our due diligence and information-sharing processes. It was well-positioned and effective,” commented Badach.

Badach is also complimentary of the role Intralinks played in maintaining the confi dentiality of the deal. The strong security of the Intralinks virtual data room kept the information contained to a select group of people. “The news of the merger did not leak. We made it through some very involved discussions with no information breaches.”

“Intralinks Dealspace was a highly effective tool for managing our due diligence and information-sharing processes.”

— Glen BadachCFO

Direct Edge

(NYSE: IL): The leading, global technology provider of inter-enterprise content management and collaboration solutions designed to enable the exchange, management control of documents and content between organizations securely and compliantly when working through the fi rewall. Thousands of companies and more than two million professionals use Intralinks for everything from ad hoc collaborations to complex, multi-business partnerships in fi nancial services, life sciences, manufacturing, technology, and a wide range of other industries worldwide.

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