American financial market company CME Group has completed its acquisition of UK-based financial technology provider NEX Group in a deal worth about £3.9bn.
CME Group expects its combination with the UK company will enable clients across the world to trade futures, cash and over-the-counter (OTC) markets, streamline portfolios and analyze data to manage risk efficiently while capturing opportunities.
The US firm said that even though the NEX name will be retired, the brand will be continued to operate its individual Markets and Optimization businesses as sub-brands including BrokerTec, EBS, TriOptima and Traiana.
Based in London, NEX Group provides platforms, services, tools and expertise to its clients to assist them in execution and optimization of resources across the transaction lifecycle.
The company’s optimization services include trade and portfolio management, regulatory reporting financial resource optimization, data insights and analytics.
The deal, which was announced in March 2018, valued each share of NEX Group at £10. As per the terms, CME Group agreed to pay 500p in cash and issue 0.0444 of its shares in exchange of each of the NEX shares.
The financial market company plans to utilize its technology, futures trading and product development expertise to consolidate and scale NEX businesses, while preserving the latter’s existing market structures.
CME Group expects the enlarged company’s electronic FX and fixed income platforms to provide new opportunities in trading and in simplifying access by cutting down on the number of touchpoints to trade across platforms.
Apart from that, the post-trade services expertise of the combined company will bolster its compression, reconciliation and processing businesses, said the US firm.
CME Group chairman and CEO Terry Duffy said: “By combining the strengths of our two leading organizations, CME Group is uniquely positioned to address the changing needs of market participants worldwide.
“Together, we will provide efficient access to futures, cash and OTC markets, as well as post-trade services and data offerings that will further support cost-effective trading and risk management.”
CME Group said that it will retain its corporate headquarters in Chicago and stick with London as its European headquarters.