Direct Edge and BATS Global Markets

THE SITUATION

The global retail and grocery markets industry is fiercely competitive and constantly changing. In 2013, to better serve its customers, Carrefour Group decided to modernize its facilities and expand operations. Company management prepared to purchase 126 retail galleries — all located next to existing Carrefour Group hypermarkets. A single vendor owned all the properties, which included: 56 France-based assets; 63 Spanish assets; and seven Italian ones.

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. 

SOLUTION

On advice of its bankers, Direct Edge turned to Intralinks 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 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 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.”