Leading US financial firm CME Group has announced that it has agreed to acquire London-based NEX Group in a deal worth $5.5bn.
CME Group, renowned as being the world’s largest futures exchange and the owner of the Chicago Mercantile Exchange, will pay approximately $14 per share for NEX, consisting of $8 in cash and 0.0444 CME Group shares that are currently valued at $158.84.
“At a time when market participants are seeking ways to lower trading costs and manage risk more effectively, this acquisition will allow us to create significant value and efficiencies for our clients globally,” said CME Group Chairman and Chief Executive Officer Terry Duffy.
“Building on NEX’s deep roots in Europe and Asia and CME’s strong technology platform, we will transform our international profile and broaden our distribution network in spot and futures FX products as well as cash, repo and futures products in US Treasuries.”
Michael Spencer, CEO of NEX, will join the CME Group Board of Directors upon closing of the acquisition, remaining with the newly combined company as a Special Adviser who will be tasked with easing the merger.
“The combination of NEX and CME will be an industry-changing transaction,” said Spencer. “The technology and innovation opportunities will be diverse and extraordinary.”
The transaction is forecast to complete in H2 2018 once the necessary approval is given from both NEX shareholders and regulators.