Nasdaq to get foot in options market

The Nasdaq Stock Market's agreement to acquire the Philadelphia Stock Exchange for $652 million in cash gives the largest U.S. electronic stock market a foothold in the fast-growing options market.

The deal, unveiled Wednesday, comes as many of the world's exchanges are succumbing to a wave of consolidation aimed at boosting market share and protecting profits as competition mounts from electronic upstarts.

Nasdaq said it expected the acquisition of the nation's oldest stock exchange and its third-largest options market to close in the first quarter and to start adding to Nasdaq's bottom line in 2009.

Nasdaq said it planned to maintain the Philadelphia Exchange's structure.