SIX will reportedly be expanding its European Exchange Capabilities through the acquisition of Aquis.
The boards of SIX Group AG and Aquis Exchange Plc announced that they have entered an agreement on the terms of a “recommended cash offer” to be made by SIX, to acquire the issued and to be issued ordinary share capital of Aquis at a “price of 727 pence per share.”
The boards of SIX Group AG and Aquis Exchange Plc officially confirmed that they have reached agreement on the terms of the offer to be made by SIX, to acquire the “entire issued and to be issued ordinary share capital” of Aquis.
Founded in 2012 with headquarters in London and an EU base in Paris, Aquis operates across business segments including a “pan-European multi-lateral trading facility (MTF) for cash equities which covers 16 European markets (Markets), licensing of proprietary market infrastructure technologies (Technologies), an UK primary listing growth market (Stock Exchange), and market data derived from Markets and Stock Exchange (Data).”
SIX considers the acquisition of Aquis to be an opportunity which will complement its efforts to scale the exchange business.
The resources of SIX and Aquis create a Pan-European Exchange across primary exchange and MTF businesses.
Both firms share a philosophy regarding capital markets innovation, liquidity and offering choice to users, which will enhance the “ability of SIX to serve customers in Switzerland, Spain and across Europe.”
The value proposition of combining Aquis’ tech solutions business with SIX’s capabilities unlocks “recurring revenue streams.”
In addition, it provides the opportunity to create a pan-European listing venue for growth firms by bringing together Aquis’ and SIX’s growth listing segments.
Aquis offers SIX the opportunity to build on its trading offering, adding Aquis’ MTF business to SIX’s primary exchange and data businesses, “extending SIX’s pan-European presence.”
SIX’s clients and shareholders benefit from the combined group’s enhanced capabilities and pan-European access to exchange services, “accompanied by new growth opportunities and thus strengthened Swiss and Spanish financial centres.”
SIX shares Aquis’ commitment to capital markets innovation and believes Aquis has a similar philosophy with respect “to liquidity, offering choice to users and challenging pan-European incumbents in all parts of the exchange value chain.”
By combining Aquis’ tech solutions business with SIX’s multi-asset class trading, data and post-trade footprint, a “unique value proposition unlocks recurring revenue streams.”
The combination with Aquis, whose infrastructure facilitates SMEs and growth firms in accessing capital markets, is set to create the opportunity for a competitive pan-European listing venue.
SIX expects Aquis to provide the opportunity to create an attractive offering for retail brokers by extending SIX’s tradable securities and “improving execution quality for retail liquidity across Europe.”
Aquis has a path of growth ahead; however, the board recognises there are operational, commercial and market risks associated with the “timing of future value creation.”
The cash offer reportedly de-risks this future value creation and provides Aquis shareholders with value at a “material premium.”
As part of SIX, they have an opportunity to accelerate the development of their business and compete on the European stage, while retaining their entrepreneurial spirit.
SIX shares their deep commitment to capital markets innovation and together they will be better placed to “assist SMEs and growth companies in accessing capital markets.”
