Cboe Global Markets, Inc. has completed its acquisition of Chi-X Asia Pacific Holdings, Ltd, an alternative market operator and provider of market solutions. With this move, Cboe benefits from an entrance into two of the world’s largest securities markets – Japan and Australia which allows the company to establish a significant presence in the Asia Pacific region for the first time.
Ed Tilly, Chairman, President and Chief Executive Officer at Cboe Global Markets, commented:
Edward T. Tilly
Welcoming Chi-X Asia Pacific to the Cboe network represents an exciting milestone in Cboe’s growth story and another important step in our vision to become a truly global marketplace for our customers. The team at Chi-X Asia Pacific shares Cboe’s dedication to defining markets through innovative products, services and trading solutions. We look forward to the opportunities ahead as we welcome the Chi-X team to the Cboe community and work together to accelerate Chi-X Asia Pacific’s further growth and extend Cboe’s global footprint.
Chi-X Asia Pacific was acquired from J.C. Flowers & Co. LLC, the terms of the deal were not disclosed. Cboe noted in its announcement that “purchase price is not material from a financial perspective and is expected to be nominally accretive to the company’s adjusted earnings in 2021.” The transaction was funded with cash on hand and borrowings under its term loan credit agreement.
The acquisition of Chi-X Asia Pacific will allow Cboe to bring new trading solutions and services to Asia Pacific such as the block trading capabilities of BIDS Trading, which was acquired by Cboe in January this year. BIDS operates a large block trading ATS with its current network covering US, Europe and expanding into Canada. With the addition of Asia Pacific, Cboe expects to create a global block trading platform to serve a broader base of customers.
