Instinet, the electronic brokerage previously spun out of Reuters, is being acquired by Nomura, the Japanese bank, following an auction by its current owners, US private equity group Silver Lake Partners.
Initial reports, from Financial News, suggest Nomura will be paying $1bn for the business, which was acquired by Silver Lake less than a year ago for $208m. The Japanese bank saw off competition from Citigroup and State Street to clinch the deal.
With strong historical ties to the Nasdaq market, Instinet’s businesses include institutional broking, global portfolio trading, direct market access and algorithmic trading systems. Trading through the service has soared this year, with growth especially strong in Europe and Asia.
In a statement confirming the purchase, Nomura cited the “advanced execution technologies” that Instinet would bring to its hedge fund and institutional investment execution services. It added that Instinet would also be bringing 1,500 agency broking clients from around the world.
Instinet’s senior management, led by chief executive Edward Nicoll, will be staying with the business under its new ownership.