The global exchange landscape is shifting as TMX Group (TSX: X), the operator of the Toronto Stock Exchange, moves to solidify its international footprint. The company announced a definitive agreement to acquire Cboe Australia and Cboe Canada from Cboe Global Markets (CBOE: CBOE) for approximately C$409 million in cash. The deal marks a significant expansion for the Canadian powerhouse, pushing its reach into the Asia-Pacific region while tightening its grip on its home market.
The two acquired entities produced approximately $87 million in combined revenue for 2025, alongside adjusted EBITDA of $25 million. By integrating these platforms, TMX aims to expand its global footprint while “reducing complexity and costs for Canadian market participants.”
John McKenzie, Chief Executive Officer of TMX Group, noted that the businesses are highly complementary to TMX’s existing operations and will enhance the reach and depth of the markets it serves.
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The divestiture follows a strategic review by Cboe Global Markets aimed at streamlining its portfolio. The Chicago-based exchange operator is pivoting its resources toward its core global derivatives and data businesses, which have seen sustained growth. Craig Donahue, Cboe’s Chief Executive Officer, stated that the sale allows the company to sharpen its focus and deploy capital into optimizing its core business for further growth and profitability.
Cboe confirmed that the decision to sell was not a reflection of the performance of the Australian or Canadian units. Instead, the move aligns with a broader “global strategic realignment” that included the recent exit of the US and European Corporate Listings business and the wind down of the Japanese equities business.
TMX Group expects the acquisition to be accretive to adjusted earnings per share within the first year of ownership, with revenue growth expected to be in-line with long term financial objectives.
A timeline to closing was not provided, with closing pending standard regulatory approvals in both Canada and Australia.
TMX Group last traded at $53.89 on the TSX.
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