5th Jul 2019 09:39
(Alliance News) - Aquis Exchange PLC said Friday that it will acquire NEX Exchange Ltd from US futures exchanges operator CME Group Inc for GBP1 plus an additional working capital of GBP2.7 million.
Aquis expects to complete the acquisition of NEX, which serves as a stock market for smaller firms, in autumn, following Financial Conduct Authority approval.
NEX Exchange works with 51 registered brokers and 89 companies listed on its two markets which have a combined market capitalisation of GBP1.9 billion. The newly-acquired firm is one of just four equities focused Recognised Investment Exchanges in the UK.
NEX Exchange delivered revenue of GBP1.5 million but had losses of GBP2.1 million in the year ended March 31, 2018. Aquis said a number of cutbacks can be made in the business to offset the losses.
Aquis Chief Executive Alasdair Haynes said: "Our stated aim is to become the leading technology-driven exchange services group, and this acquisition is a milestone towards delivering this vision."
"We have a successful blueprint of proven technology and are confident that we can not only deliver growth but we can also positively address the current issues in small and mid-cap trading. We have the capability, capacity and ambition to drive further shareholder value through this transaction."
Shares in the Aquis Exchange were down 0.8% at 482.00 pence in London on Friday morning.
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