4th Mar 2020 16:15
(Alliance News) - Aquis Exchange PLC said Wednesday its takeover of NEX Exchange Ltd has been approved by the UK Financial Conduct Authority.
London-based exchange services firm Aquis agreed back in July of last year to buy NEX Exchange Ltd off US futures exchange operator CME Group Inc, for a nominal sum of GBP1 plus working capital of GBP2.7 million. The company had originally expected the deal to complete during the autumn.
NEX has 86 companies listed on its primary market, as well as 670 on the secondary market.
NEX delivered revenue of GBP1.5 million but had losses of GBP2.1 million in the year to March 2018. Aquis said back in July that a number of cutbacks could be made in the business to offset the losses.
Aquis said the deal is another step towards its goal of becoming the "leading exchange services group in Europe".
"Underpinned by the group's proven technology and a track record of transparency and innovation, the board believes that Aquis' experience in building new businesses in the exchange industry and increasing liquidity, means it has the ability to transform the old NEX Exchange business at a time when MiFID II implications and other factors make the IPO industry ripe for innovation," the company said.
Following the deal, NEX Exchange will be renamed Aquis Stock Exchange.
Aquis Non-Executive Director Glenn Collinson will step down from the Aquis Exchange PLC board and will join the Aquis Stock Exchange board on completion of the acquisition.
Chief Executive Alasdair Haynes said: "We are delighted that this acquisition has now been approved, and we look forward to welcoming NEX Exchange's staff, customers and other stakeholders to our group.
"Since announcing our intention to purchase the business we have been most encouraged by the appetite for change in the industry. We look forward to building Aquis Stock Exchange into the supportive home for quality growth businesses we believe it should become."
Aquis, which listed on AIM in June 2018, became the first multilateral trading facility to achieve dual-trading in Europe. Its French subsidiary Aquis Exchange Europe received approval from French authorities to operate in Paris, ensuring the company can trade in Europe post-Brexit.
Shares in Aquis Exchange were up 5.1% on the London Stock Exchange on Wednesday afternoon at 410.00 pence each.
By Paul McGowan; [email protected]
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