Aquis Exchange PLC Acquisition of NEX Exchange (5782E)
05 July 2019 - 4:00PM
UK Regulatory
TIDMAQX
RNS Number : 5782E
Aquis Exchange PLC
05 July 2019
5 July 2019
Aquis Exchange PLC
("Aquis", the "Company" or the "Group")
Acquisition of NEX Exchange
Aquis Exchange PLC (AIM: AQX), the exchange services group that
operates pan-European cash equities trading businesses and develops
and licenses exchange software to third parties, is pleased to
announce that it has agreed to acquire NEX Exchange Limited ("NEX
Exchange") from CME Group Inc. (the "Acquisition") for a cash
consideration of GBP1, plus approximately GBP2.7 million based on
NEX Exchange's current working capital levels.
NEX Exchange, the UK based stock market for growth enterprises,
is one of only four equities-focused Recognised Investment
Exchanges (RIEs) in the UK. It works with 51 registered brokers, 7
market makers and 89 companies currently listed on its two markets
with a combined market capitalisation of approximately GBP1.9
billion.
This Acquisition is another step in Aquis' ambition to become
the leading exchange services group in Europe and provides a unique
opportunity to acquire an RIE business with a focus on primary
markets in a cost and time effective manner. Underpinned by the
Group's proven technology and a track record of transparency and
innovation, the Board believes that with Aquis' experience in both
building new businesses in the exchange industry and also
increasing liquidity, it has the ability to transform NEX Exchange
at a time when MiFID II implications and other factors make the
industry ripe for innovation. The Board believes that the
Acquisition provides 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 GBP1.51m and a loss
before tax of GBP2.05m. The Company believes that significant cost
savings can be delivered in the short term, significantly reducing
the loss in the initial period following the Acquisition.
Completion of the Acquisition is expected this autumn, subject
to FCA approval. The Company will update the market upon receipt of
FCA approval and completion.
Alasdair Haynes, Chief Executive Officer of Aquis,
commented:
"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."
Ken Vroman, Senior Managing Director, Cash Markets and
Optimization Services, CME Group, commented:
"We are pleased to have reached an agreement with Aquis Exchange
to acquire NEX Exchange from CME Group. 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."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (MAR).
Management will host a conference call for analysts at 8:30am
today regarding the Acquisition. Please contact aquis@almapr.co.uk
for dial in details.
Enquiries:
Aquis Exchange PLC Tel: +44 (0) 20 3597
6321
Alasdair Haynes, CEO
Jonathan Clelland, CFO and COO
Belinda Keheyan, Head of Marketing Tel: +44 (0) 7768
078110
Liberum Capital Limited (Nominated Adviser Tel: +44 (0) 20 3100
and Broker) 2000
Clayton Bush
Chris Clarke
Edward Thomas
Kane Collings
Alma PR (Financial PR Adviser) Tel: +44 (0)20 3405
0209
Rebecca Sanders-Hewett aquis@almapr.co.uk
Caroline Forde
Susie Hudson
About Aquis Exchange
Aquis Exchange PLC is an exchange services group, which operates
a pan-European cash equities trading business (Aquis Exchange) and
develops and licenses exchange software to third parties (Aquis
Technologies).
Aquis Exchange PLC (AQX.L) is quoted on the London Stock
Exchange's Alternative Investment Market (AIM).
Aquis Exchange is authorised and regulated by the UK Financial
Conduct Authority and France's Autorité des Marchés Financiers to
operate Multilateral Trading Facility businesses in the UK and in
EU27 respectively.
Aquis operates a lit order book and does not permit aggressive
non-client proprietary trading, which has resulted in lower
toxicity and signalling risk on Aquis than other trading venues in
Europe. According to independent studies, trades on Aquis are less
likely to lead to price movement than on other lit markets. Aquis
applies a subscription pricing model which works by charging users
according to the message traffic they generate, rather than a
percentage of the value of each security that they execute. This
model can significantly reduce the cost of trading.
Aquis Technologies is the software and technology division of
Aquis Exchange PLC. It creates and licenses cutting-edge,
cost-effective matching engine and trade surveillance technology
for banks, brokers, investment firms and exchanges.
For more information, please go to www.aquis.eu and
www.aquis.technology
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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