By Mark McSherry
Switzerland-based European stock exchange operator SIX Exchange Group AG said on Monday it agreed to buy Aquis Exchange Plc — London’s challenger stock market — in a cash offer at a price of £7.27 per share that puts an enterprise value of £194 million on the deal.
“The offer values the entire issued and to be issued share capital of Aquis at approximately £207 million (using the treasury stock method for share options), and £225 million on a fully diluted basis, and implies an enterprise value of approximately £194 million,” said SIX.
The offer represents a premium of 120% to the closing price of £3.30 per Aquis share on November 8, and 68% to the six-month volume weighted average price of £4.33 pence per Aquis share to November 8.
SIX operates exchanges across the Swiss and Spanish financial centres.
Founded in 2012 with headquarters in London and an EU base in Paris, Aquis operates across several business segments — including a pan-European multi-lateral trading facility (MTF) for cash equities which covers 16 European markets, licensing of proprietary market infrastructure technologies, a UK primary listing growth market and market data derived from markets and stock exchange.
“SIX considers the acquisition of Aquis to be a compelling strategic opportunity which will complement its strategy to scale the exchange business beyond its home markets,” said SIX.
“The combined resources and capabilities of SIX and Aquis create a Pan-European Exchange across traditional primary exchange and MTF businesses.
“Both companies share a common philosophy regarding capital markets innovation, liquidity and offering choice to users, which will further strengthen the ability of SIX to serve customers in Switzerland, Spain and across Europe.
“Furthermore, the unique value proposition of combining Aquis’ next-generation technology solutions business with SIX’s capabilities unlocks recurring revenue streams.
“In addition, it provides the opportunity to create a competitive pan-European listing venue for growth companies by combining Aquis’ and SIX’s growth listing segments.”
Bjørn Sibbern, Global Head of Exchanges at SIX, said: “We believe that combining Aquis with SIX’s platform is a compelling opportunity to bring together two businesses with a shared commitment to capital markets innovation.
“The combination will add Aquis’ strong offering to our traditional primary exchange and data businesses, complementing SIX’s existing growth listing segments.
“As part of SIX, Aquis will continue to operate under its existing brand and business model with maximum agility while benefitting from our resources, scale and further investment, enhancing Aquis’ ability to continue to develop its business.
“We look forward to welcoming the Aquis team to SIX and continuing to build a diverse, pan-European Exchange Innovator.”
Aquis CEO Alasdair Haynes said: “I am immensely proud of the business we have built over the past 12 years. Since launching as a start-up subscription based exchange in 2012, Aquis has become a diversified multi-product European exchange group that creates and facilitates more efficient markets for a modern economy.
“This has only been possible through continuous technology-led innovation and the tireless efforts of our people.
“Aquis has a clear path of growth ahead; however, the board recognises there are always some operational, commercial and market risks associated with the timing of future value creation.
“The cash offer de-risks this future value creation and provides Aquis shareholders with certain value at a material premium.
“As part of SIX, we have an exciting opportunity to accelerate the development of our business and compete more effectively on the European stage, while retaining our entrepreneurial spirit. SIX shares our deep commitment to capital markets innovation and together we will be better placed to assist SMEs and growth companies in accessing capital markets.”