Nasdaq Inc. agreed to acquire International Securities Exchange, an operator of three electronic options exchanges, from Deutsche Bö rse Group, for $1.1 billion.

ISE operates three electronic options exchanges: ISE, ISE Gemini and ISE Mercury. ISE's exchanges serve as the venues for more than 15% of trading in U.S. options. The deal is expected to close in the second half of 2016.

As part of the transaction, Nasdaq will gain an additional 20% stake in the Options Clearing Corp., for a total of 40% ownership in the world's largest equity derivatives clearing corporation.

"The equities options business has been core to our long-term strategy, and we believe an essential component to the strength of the Nasdaq franchise," said Nasdaq CEO Bob Greifeld.

The deal, which is expected to add to Nasdaq's earnings within 12 months of closing, comes amid a potential wave of deals among exchanges. The London Stock Exchange has said it is in advanced talks with Deutsche Bö rse about a so-called merger of equals that would value the combined company at about $28 billion.

Intercontinental Exchange Inc. and CME Group Inc. are also considering bids for the LSE.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

March 09, 2016 17:25 ET (22:25 GMT)

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