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Across the globe, stock exchanges are scrambling to bulk up their operations. This means shelling out billions and billions for acquisitions.

The latest deal: Deutsche Boerse AG wants to pay $2.8 billion for the International Securities Exchange Holdings, Inc. (NYSE: ISE).

The ISE holds the second largest options market in the U.S. What's more, it has a very sophisticated electronic platform, which, no doubt, is a critical asset. Also, the options business is high margin.

As for Deutsche Boerse, it has the Frankfurt stock exchange and a nice business in derivatives.

All in all, it's a pretty good fit and should help blunt the competition from Nasdaq and the NYSE Euronext, Inc. (NYSE: NYX).

The bid is at $67.50, a juicy premium of over 40% -- some return in a single day.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Deutsche Boerse's $2.6 billion hug for ISE originally appeared on BloggingStocks on Mon, 30 Apr 2007 14:27:00 EST. Please see our terms for use of feeds.

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