LONDON (ShareCast) - (Sharecast News) - Exchange services group Aquis Exchange has agreed to acquire NEX Exchange from CME Group for a cash consideration of £1, plus approximately £2.7m based on NEX Exchange's current working capital levels, it announced on Friday.
The AIM-traded firm said NEX Exchange, a UK-based stock market for growth enterprises, was one of only four equities-focused Recognised Investment Exchanges (RIEs) in the UK.

It worked with 51 registered brokers, seven market makers and 89 companies currently listed on its two markets, with a combined market capitalisation of approximately £1.9bn.

The acquisition was described by Aquis as "another step" in its ambition to become "the leading exchange services group" in Europe, adding that it provided a "unique opportunity" to acquire an RIE business with a focus on primary markets in a cost and time-effective manner.

It said it believed that with its experience in both building new businesses in the exchange industry and also increasing liquidity, it had the ability to transform NEX Exchange at a time when MiFID II implications and other factors made the industry "ripe" for innovation.

The board said the acquisition would provide a "unique opportunity" to build a pan-European, technology driven listing exchange for growth companies.

Based on the audited financial accounts for the year ended 31 March 2018, NEX Exchange delivered revenues of £1.51m and a loss before tax of £2.05m.

The company said it believed that "significant" cost savings could be delivered in the short term, "significantly" reducing the loss in the initial period following the acquisition.

Completion of the acquisition was expected in the autumn, subject to FCA approval.

"Our stated aim is to become the leading technology-driven exchange services group, and this acquisition is a milestone towards delivering this vision," said Aquis Exchange chief executive officer Alasdair Haynes.

"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."

Ken Vroman, senior managing director for cash markets and optimisation services at CME Group, added that the company was "pleased" to have reached an agreement with Aquis Exchange for it to acquire NEX Exchange.

"There are natural synergies between the two companies, and we believe Aquis is well positioned to take NEX Exchange to the next level of its growth."

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