LONDON: SIX Exchange Group AG reached agreement on the terms of a recommended cash offer for the entire issued and to be issued ordinary share capital of Aquis Exchange Plc for £207 million.
Under the terms, Under the terms of the offer, each Aquis shareholder will receive 727 pence in cash for each Aquis share.
SIX operates a fully integrated exchange value chain, offering a diversified product portfolio for securities trading, stock market transactions, financial information and payment transactions, across multiple geographies.
Central to SIX’s exchange strategy has been a focus on addressing liquidity fragmentation trends by continually innovating the functionalities of its platform offering.
SIX considers an acquisition of Aquis to be a compelling strategic opportunity which will complement its established growth strategy and is aligned with its approach to capital allocation.
SIX expects the acquisition of Aquis to strengthen its ability to serve customers in Switzerland, Spain and internationally with its reliable infrastructure services and seamless access to capital markets.
It would also bring together the resources and capabilities of both businesses, and SIX expects both businesses to benefit from greater pan-European scale, driving growth opportunities beyond their respective home markets to the benefit of customers and market participants.
Since its formation in 2012, Aquis has grown from a start-up subscription based exchange to a diversified, multi-product challenger next-generation exchange group with the objective of creating better and more efficient markets for the modern economy.
Aquis’ success has been driven by high quality leadership and technology-led innovation which has delivered strong operating performance with revenue growing by 495% since IPO alongside a significant improvement in profitability, delivering a £5.2 million profit in 2023.
Whilst the Aquis Directors are confident in the growth potential in each of Aquis’ divisions, they recognise that the European exchange market remains highly competitive and requires ongoing investment in technology and distribution against well-resourced peers operating with greater scale.
Aquis’ future growth is predicated on an increase in new technology clients along with retention of existing clients, an increase in European equity market volumes and issuers, and the timing and impact of a European Consolidated Tape, which are uncertain and contain an element of volatility.
Commenting on the Offer, 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.”
Commenting on the Offer, Alasdair Haynes, founder and CEO of Aquis, 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 Aquis Directors recognise there are always some operational, commercial and market risks associated with the timing of future value creation. The 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.”