Nordic and Baltic stock exchange operator OMX AB said Tuesday it will buy the Icelandic bourse in a deal worth about 250 million kronor.

The Stockholm based company said it had signed a letter of intent with the owner of Reykjavik based ICEX, Eignarhaldsfelagid Verdbrefathing Hf, to buy the bourse operator. A formal agreement should be reached by the end of October, OMX said.

Under the deal, OMX will offer EV shareholders around 2.07 million newly issued shares in OMX, with an estimated value of around 250 million Swedish kronor.

Through the combination, we're creating more value, and with the buy of ICEX we're adding another 22 companies to our list of 670 companies, OMX Chief Executive Magnus Bocker told Dow Jones Newswires. Combined with our technology (business), where we supply technology to more than 60 exchanges, we're an exciting bourse.

OMX already operates the exchanges in Sweden, Denmark, Finland, Latvia, Lithuania and Estonia.

The announcement comes as European and U.S. exchanges are in the midst of sweeping consolidation. Nasdaq Stock Market Inc. has amassed 25 percent in the London Stock Exchange Group PLC, while NYSE Group Inc. owner of the New York Stock Exchange is in the midst of trying to merge with European bourse operator Euronext NV.

Last week, reports that Nasdaq was in talks to acquire OMX sent the Stockholm based company's shares soaring.

On Tuesday, OMX shares were up 1.5 percent at 136.50 kronor on the Stockholm exchange.