Cboe Global Markets, Inc. (Cboe: CBOE) announced on Monday that it has entered into a definitive agreement to acquire Aequitas Innovations, Inc., more commonly known as NEO. The move expands the Chicago-based exchange’s footprint in North America, including the Canadian securities exchange.
“Adding NEO to the Cboe network better enables us to create a first-class equities [sic] offering in Canada, bolstering our global markets in North America, Europe, and [the] Asia Pacific, and bringing us one step closer to our vision of building one of the world’s largest global derivatives and securities trading networks,” said Cboe Global Markets CEO Ed Tilly.
While the terms of the deal were not fully disclosed, the firm has relayed that the transaction will be funded with cash on hand. The purchase price is also not material from a financial perspective and is expected to be nominally accretive, according to the exchange.
The US options exchange also acquired the alternative trading system MATCHNow in 2020. At the closing of the NEO acquisition, the firm said it will be able to “provide a comprehensive equities platform for the Canadian markets with over 16.5% combined market share”.
The firm plans to build one of the world’s largest global securities and derivatives trading networks after the transaction closes.
The acquisition is expected to close in the first half of 2022, subject to customary regulatory approvals.
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