NYSE Euronext acquires minority stake in Receivables Exchange

NYSE Euronext has acquired a minority stake in The Receivables Exchange (TRE), an online marketplace for US receivables sales.

Both the companies have launched a joint strategic initiative to market TRE's Corporate Receivables Program (CRP) to potential sellers, including New York Stock Exchange listed companies.

TRE's CRP is an electronic marketplace for the standardized purchase and sale of corporate accounts receivable.

CRP gives companies increased flexibility in managing working capital via receivables sales, access to diverse funding sources without adding leverage, off-balance sheet benefits, reduced complexity and time to market, and competitive cost of capital, said NYSE.

The process lowers Days Sales Outstanding to as little as one day and allows companies to tap into the $17 trillion US accounts receivable market.

In addition, NYSE Euronext has appointed Paul DeDomenico, former CEO of GE Capital - working capital solutions, as head of global CRPs.

NYSE Euronext executive vice president and head of NYSE Listings Scott Cutler said their alliance with TRE adds to their growing portfolio of issuer services and provides their listed companies affordable and continuous access to working capital.

TRE co-founders Justin Brownhill, CEO, and Nic Perkin, president jointly said CRP provides an efficient and cost-effective way for NYSE listed and other companies to leverage receivables for liquidity and balance sheet management and to improve return on assets and equity.

Terms of the acquisition investment were not disclosed.