CBOE Holdings, parent company of the Chicago Board Options Exchange, agreed to acquire BATS Global Markets for $3.2 billion in stock and cash, both companies announced Monday.
The boards of CBOE and BATS approved the acquisition in unanimous votes, according to news releases from CBOE and BATS.
The deal is expected to close in the first half of 2017, pending regulatory approvals.
Edward T. Tilly, CBOE Holdings CEO, will retain that role at the combined firm under the CBOE brand. Chris Concannon, BATS CEO, will become president and chief operating officer of CBOE Holdings, succeeding Edward L. Provost, who plans to retire upon completion of the merger.
The deal will expand CBOE's primarily options-focused business into equities, exchange-traded funds and foreign exchange, which BATS provides, and will broaden CBOE's geographic reach in Europe, where BATS has a strong foothold.
Also, both companies said CBOE will merge BATS' proprietary trading technology with its own into one platform.
CBOE's $3.2 billion comprises 69% CBOE stock, valued at $70.30 as of Sept. 23, and the remainder in cash.
Bank of America Merrill Lynch and Broadhaven Capital Partners were co-lead financial advisers to CBOE Holdings, and Sidley Austin was its legal counsel on the deal. Barclays Capital was lead financial adviser to BATS, with UBS Investment Bank acting as co-financial adviser and Davis Polk & Wardwell serving as its legal counsel.
