Cboe Global Markets set to acquire equities alternative trading system MATCHNow

Maria Nikolova

The acquisition is expected to be immediately accretive to earnings, contributing approximately $0.01 to earnings per share in 2020.

Cboe Global Markets, Inc. today announced it has entered into a definitive agreement to acquire equities alternative trading system (ATS) MATCHNow from Virtu Financial, Inc.

The deal, which Cboe plans to fund with cash on hand, is expected to close in the third quarter of 2020, subject to regulatory approvals 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. The acquisition is expected to be immediately accretive to earnings, contributing approximately $0.01 to earnings per share in 2020.

Once the acquisition is completed, Cboe is set to gain a foothold in a key capital market new to the company, while expanding the geographic presence and diversifying the product capabilities of its North American equities business. Ownership of MATCHNow is also poised to provide Cboe with a strategic pathway to build towards a comprehensive equities platform for the Canadian markets and potentially establish a significant presence in the region.

Cboe plans to invest in MATCHNow’s growth, and deploy MATCHNow’s innovative products, solutions and industry expertise to serve Canadian equity markets and investors. The transaction reflects Cboe’s broader growth strategy, which includes targeting acquisitions that have the potential to accelerate its geographic and asset class presence, while deepening its customer reach.

Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets, said: “This is a highly strategic acquisition that enables us to expand into a new key geography, and strengthens our position as a global leader in providing innovative solutions and technology to enhance our customers’ trading experience. With our U.S. and European presence covering many of the world’s largest equities marketplaces, we are excited to enter the Canadian market.”

MATCHNow is a profitable business that generated over CAD10 million in revenue in 2019.

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