In a transaction valued at £10 per share($14.1), consisting of 500 pence in cash and 0.0444 CME Group shares, USA based CME Group is set to acquire UK based NEX Group plc. Unanimously approved by the board of directors of both the companies, the transaction is expected to close in the second half of 2018 and is subject to pending approvals by regulators and NEX shareholders.
The transaction will result in a company that is leading, client-centric, global markets company that will deliver better ways to trade and manage risk across futures, cash and OTC products.
According to CME Group Chairman and Chief Executive Officer Terry Duffy:
“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. As one organization, we will be able to employ the complementary strengths of each company to serve a wider client base while diversifying our combined businesses across futures, cash and OTC products and post-trade services.”
“Michael Spencer and his senior leadership team have built a world-class organization that is at the center of capital markets. We are committed to maintaining the longstanding relationships NEX has with its clients and exchange and clearing house partners. 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 U.S. Treasuries,” Duffy said.
NEX CEO Michael Spencer is expected to join the CME Group Board of Directors following the completion of the acquisition. Michael Spencer will also be ambassador for the combined company, working with key clients, regulators and officials in EMEA and Asia.
CME Group’s lead financial advisor is J.P. Morgan while Barclays is acting as financial advisor to CME for this transaction Skadden, Arps, Slate, Meagher & Flom LLP is acting as CME Group’s legal advisor. NEX’s financial advisors were Evercore and Citi while Clifford Chance LLP is acting as NEX’s legal advisor.
About CME Group
Founded in 1898, CME Group operates contract markets for the trading of futures and options on futures contracts worldwide. Headquartered in the USA, CME Group offers a range of products across various asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals. CME Group employs around 2830 employees worldwide.
Headquartered in the UK, NEX Group Holdings Limited delivers pricing, analytics, index, and regulatory reporting solutions to various clients worldwide. Employing around 1934 employees, NEX operates through NEX Markets, NEX Optimisation, and NEX Group and other segments.