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

1. 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.
2
6
20%
Months to conduct the
due diligence
Firms using the virtual data room
Share of the U.S. equity
trading market
Situation
In 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 firm meant that it would be wellpositioned against legacy competitors, such as NASDAQ and the New York Stock
Exchange (NYSE).
Months of due diligence followed, as the two firms worked out the details of the
merger. Massive amounts of information needed to be shared securely between the
two firms. Security was essential, as any leak of the discussions could compromise
the effectiveness of the merger.
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2. Client Focus Success Stories
Direct Edge and BATS Global Markets
“Intralinks Dealspace
was a highly effective
tool for managing
our due diligence and
information-sharing
processes.”
— Glen Badach
CFO
Direct Edge
Solution
On advice of its bankers, Direct Edge turned to Intralinks Dealspace for
Corporate Development to establish its confidential virtual data room. The two
firms 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 finish.
“When you are in the middle of merger discussions, secure and seamless access
to sensitive documents is critical,” said Glen Badach, Chief Financial Officer of
Direct Edge. “Intralinks performed flawlessly during our due diligence, without a
single problem or impediment.”
Direct Edge found it user-friendly to set up and use the confidential virtual
data room, which was accessed by roughly 30 people from six different firms.
Despite the easy access, security around Intralinks was highly sophisticated.
“The thousands of sensitive files 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 difficult to assign permissions or set
user names and passwords. Intralinks Dealspace seemed to be right-sized in
terms of security.”
Benefits
The 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
confidentiality 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
intralinks.com/dealspace
(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 firewall. Thousands of companies and more than two million
professionals use Intralinks for everything from ad hoc collaborations to complex, multi-business partnerships in
financial services, life sciences, manufacturing, technology, and a wide range of other industries worldwide.
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