Cboe Global Markets to acquire Canadian Stock Exchange NEO

Cboe Global Markets, Inc. has revealed signing an agreement to acquire Aequitas Innovations, Inc., also known as NEO1. The fintech organization is made up of a fully registered Tier-1 Canadian securities exchange with a varied product and services set which covers from corporate listings to cash equity trading.

With the acquisition of NEO, Cboe will be able to provide a more extensive Canadian equities offering. Operating a national securities exchange with trading, listings and other services, in addition to MATCHNow, the alternative trading system (ATS) Cboe acquired in 2020, will strengthened the company’s offering and is expected to drive more trading activity. Additionally, it will provide more opportunities for investors and capital-raisers in Canada, as well as in the US.

Toronto-based Canadian stock exchange operator with business lines across listings, trading and market data, NEO Exchange is fully operational since 2015. NEO Connect, its sister company, offers a distribution platform which supports mutual funds, private funds and private corporates. With MATCHNow and NEO businesses, Cboe will have a comprehensive equities platform offering for the Canadian markets with more than 16.5% combined market share expected at close.


Ed Tilly, Chairman, President and CEO of Cboe Global Markets, said:

Edward T. Tilly

Edward T. Tilly

Adding NEO to the Cboe network better enables us to create a first-class equities offering in Canada, bolstering our global markets in North America, Europe and Asia Pacific, and bringing us one step closer to our vision of building one of the world’s largest global derivatives and securities trading networks. With MATCHNow and NEO, Cboe can achieve scale in Canada, creating efficiencies for our combined customers with familiar technology and consistent market models. I look forward to working with the entire NEO team, whose innovative spirit, customer-first approach and drive for change will not only help us grow the NEO business, but also bring greater choice to market participants in Canada and across the globe.

Cboe has also revealed plans to evaluate a potential expansion of NEO’s listings business into other geographies.

Jos Schmitt, President and CEO of NEO, commented:

Jos Schmitt, NEO

Jos Schmitt

We are excited to draw upon Cboe’s core strengths as a leading global market infrastructure provider to further develop innovative solutions that meet the needs of investors and capital-raisers around the world. Our commitment to innovation, fairness and putting investors and capital-raisers first will not only continue under Cboe’s ownership, but now benefit from the strength and support of Cboe’s technology, market expertise and global client distribution.

According to the official announcement, Cboe plans to fund the transaction with cash on hand, supplemented by increased debt, if needed. The deal is expected to close in the first half of 2022. The terms acquisition were not disclosed, however, the company mentioned that the purchase price is not material from a financial perspective and expects it to nominally increase.

In the beginning of November, Cboe announced plans to launch a new dealer-to-dealer electronic trading platform for On-The-Run US Treasuries.


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