Cboe completes acquisition of NEO
Cboe Global Markets, Inc. (Cboe: CBOE), a leading provider of global market infrastructure and tradable products, today announced the acquisition of NEO, a fintech organization comprised of a fully registered Canadian securities exchange (NEO Exchange) with a diverse set of products and services ranging from company listings to cash equity trading and an unlisted securities distribution platform (NEO Connect).
NEO Exchange is a next-generation exchange focused on fairness, liquidity, transparency and efficiency that brings together investors and capital raisers, serving as a central force to drive Canadian capital markets forward. NEO Connect provides a distribution platform supporting mutual funds, private funds and private funds companies.
With ownership of NEO, Cboe expects to provide a enhanced canadian equities offering, bringing global infrastructure and market expertise to further grow Canada as a global equity trading hub. In addition to NEO, Cboe’s Canadian operations include MATCHNow, the alternative trading system (ATS) acquired by Cboe in 2020, and Cboe BIDS Canada, a Canadian equity block trading platform launched in February 2022. Cboe now holds approximately 15.6% of the combined stock market share. in Canada through the MATCHNow and NEO sites.
Cboe brings an innovative mindset, economies of scale, market expertise and customer distribution that can further propel NEO’s growth to benefit the Canadian market. Aligning NEO’s products with Cboe’s existing business lines, including MATCHNow and Cboe BIDS Canada, will enable Cboe to leverage its scale, technology expertise and operational efficiencies across the northern market. -American. Combining the MATCHNow and NEO businesses under one roof will allow Cboe to increase competition in Canada through a holistic actions offering market data, access services and quotes.
Cboe also plans to expand its global listings strategy by leveraging the unique listing experience NEO has built with innovation economy-focused companies globally. Through access to global resources and platforms, this enhanced offering is expected to improve efficiency and opportunities for investors and capital raisers in Canada and around the world.
Ed Tilly, Chairman and CEO of Cboe Global Markets, said, “With NEO, we are creating another cross-border connection through our network of trusted markets, enabling Canadian clients to seek global growth opportunities through to innovation, improved technology and access to new ways of marketing and listing. Our overall strategy is focused on developing a seamless experience for our combined customers and I look forward to working with the entire NEO team to bring greater choice for market participants in Canada and around the world.”
Jos Schmitt, Senior Vice President, Global Listings and President of NEO, said, “It’s an exciting time to join Cboe, which has grown beyond its options heritage to become one of the most world’s leading global market infrastructure providers. With Cboe’s expertise in operating the global equity, derivatives and more recently digital asset markets, we have a unique opportunity to not only improve Canadian markets, but also work together on new potential market data solutions that will integrate data from the United States, Canada, Europe and other global platforms. The NEO team will be instrumental in growing a world lists offering, leveraging the strength of NEO’s existing listings business in Canada. We will continue to put investors and capital-raisers first as we work with Cboe to create an exceptional experience for companies seeking to access liquidity and capital formation globally.
Fully operational since 2015, NEO Exchange is a Toronto-based Canadian exchange operator with business lines spanning listings, trading and market data. Senior Vice President, Global Listings and President of NEO, Jos Schmitt will continue to lead the NEO business, reporting to David Howson, Executive Vice President, Global President of Cboe. Schmitt will also lead Cboe’s global listings strategy. Bryan Blake, Vice President, Canadian Equities, will provide strategic leadership and direction for the transactional side of the NEO business, reporting to Adam Inzirillo, Senior Vice President, North American Equities.
Cboe financed the transaction with existing credit facilities and available cash. Terms of the agreement were not disclosed, however, the company noted that the purchase price is not material from a financial perspective and expects it to be nominally accretive to the over the next 12 months.
Source: Cboe World Markets