CBOE Holdings, Inc (NASDAQ:CBOE), the holding company for Chicago Board Options Exchange, C2 Options Exchange, CBOE Futures Exchange, and other subsidiaries, today announces a majority equity investment in The Vest Financial Group Inc., an investment advisor that provides options-centric products.
Previous investors in Vest, such as Y Combinator, Payment Ventures, and First Round Capital, have exited.
As a result of the investment, Vest is now a majority-owned subsidiary of CBOE. Karan Sood will stay at the helm of the firm as CEO. Bill Kung, Vest’s former CEO, will leave his current role as President to focus on Vest’s technology solutions business.
CBOE’s investment in Vest is funded with existing cash. The deal is not expected to be material in terms of CBOE Holdings, Inc.’s revenue or earnings for 2016.
The Vest acquisition will enable enhanced integration of CBOE’s proprietary products, strategy indexes and options expertise into Vest’s platform, which substantially minimizes the complexity of options trading while offering investors targeted protection, enhanced returns, and a decent level of predictability. Vest plans to roll out Unit Investment Trusts (UITs), Mutual Funds and Exchange Traded Products (ETPs).
Edward T. Tilly, CEO of CBOE, commented,
“We are delighted to announce our investment in Vest. We’re looking forward to an ongoing collaboration between CBOE and the highly talented Vest team. CBOE and Vest share a passion for advancing options innovation and are closely aligned philosophically. Our investment in Vest is a major step forward in our ability to democratize the risk management properties of options and volatility trading.”
Karan Sood, CEO and Co-Founder of Vest, said,
“This alliance provides an even stronger partner for our customers. CBOE is globally recognized as a leading exchange for derivative products and has a rich history of product innovation, making them the ideal strategic partner for us going forward. Joining forces with CBOE will enable Vest to offer the broadest portfolio of industry-leading, innovative options-based investment solutions to an even wider range of customers.”
“This alliance provides an even stronger partner for our customers. CBOE is globally recognized as a leading exchange for derivative products and has a rich history of product innovation, making them the ideal strategic partner for us going forward. Joining forces with CBOE will enable Vest to offer the broadest portfolio of industry-leading, innovative options-based investment solutions to an even wider range of customers.”You can view the full announcement from CBOE by clicking here.