- Planned transaction provides Cboe with a single point of entry into Australia and Japan, two of the world’s largest securities markets
- Ownership of Chi-X Asia Pacific helps enable Cboe to expand its global equities business, including bringing industry-leading block platform, BIDS Trading, to the Asia Pacific region
- Transaction positions Cboe to further execute on its strategy to build one of the world’s largest global equities and derivatives trading networks, expanding its global market data offering and access to its proprietary products
- Deal is expected to close in the second or third quarter of 2021, pending regulatory review
Cboe Global Markets, Inc. (Cboe: CBOE), a market operator and global trading solutions provider, today announced it has entered into a definitive agreement to acquire Chi-X Asia Pacific Holdings, Ltd. (Chi-X Asia Pacific), an alternative market operator and provider of innovative market solutions, from J.C. Flowers & Co. LLC. This acquisition will provide Cboe with a single point of entry into two key capital markets –
Ed Tilly, Chairman, President and CEO at Cboe Global Markets, said: "With the planned acquisition of Chi-X Asia Pacific, we continue to execute on our growth strategy by broadening our geographic and asset class presence, while enabling the further extension of our product offerings to our global network of customers. This is an exciting investment in attractive, growing markets that will complement our North American and European operations and provide a foothold in the key
Chi-X Asia Pacific is one of the most successful alternative market operators in
David Howson, currently President of Cboe's European operations will lead the company's business expansion into the region and has been promoted to President,
Cboe plans to leverage Chi-X Asia Pacific's expansive presence in
This deal also creates an opportunity for Cboe to become the global leader in equities market data, offering comprehensive data from most major markets around the world including the
The planned acquisition builds on Cboe's newly created Data and Access Solutions business, which combines Cboe Information Solutions with its global market data and access services into one holistic offering, enabling customers around the world greater access to all of Cboe's expanded data and analytics capabilities through a unified offering.
Mr. Jokovic said: "Over the past decade, Chi-X Australia has built an enviable reputation as an innovative market operator with superior market expertise, customer service and a pioneering spirit that strongly aligns with Cboe's legacy of product and market innovation. We are excited to draw upon Cboe's core strengths as a leading global exchange operator to further enhance the competitive landscape in the Australian markets with new innovation and market solutions to better meet customer needs."
Mr. Irokawa said: "Chi-X Japan is currently the only broker-neutral proprietary trading system in
Cboe plans to fund the transaction with cash on hand, supplemented by existing credit agreements, if needed. The transaction is expected to close in the second or third quarter of 2021, subject to regulatory review and other customary closing conditions. Terms of the deal were not disclosed, however the company noted that the purchase price is not material from a financial perspective and is expected to be nominally accretive to the company's adjusted earnings in 2021. Chi-X Asia Pacific generated approximately $26 million in net revenue for the twelve months ended December 31, 2020, reflecting a 26 percent growth rate compared to the prior year, with non-transactional revenue comprising 67 percent of the overall net revenue. For additional background information on Chi-X Asia Pacific, see the slide deck available under events and presentations on Cboe's Investor Relations website at http://ir.cboe.com/events-and-presentations.
Legal advisors to Cboe Global Markets on the transaction are Sidley Austin LLP (
