CME Group to Acquire NEX Group plc, Bringing Together Cash, Futures and OTC Marketplaces

-- Delivers streamlined access and new trading opportunities across spot and futures FX products as well as cash, repo and futures products in U.S. Treasuries. 

-- Expands clearing offering to include other leading post-trade services.

-- Provides consideration of £10 per share to NEX shareholders, consisting of 500 pence in cash and 0.0444 CME Group shares.

-- Produces $200 million in run-rate cost synergies annually by end of 2021.

-- Expected to close in the second half of 2018.

CHICAGO and LONDON, March 29, 2018 /PRNewswire/ -- CME Group Inc. (Nasdaq: CME) and NEX Group plc (NXG.L) today announced that they have reached an agreement in which CME Group will acquire NEX in a transaction valued at £10 per share, consisting of 500 pence in cash and 0.0444 CME Group shares (based on CME's closing share price of US$158.84 on March 28, 2018 and the exchange rate of US$1.4101:£1, on March 28, 2018).  The proposed transaction has been approved unanimously by the board of directors of both companies and is expected to close, pending approvals by regulators and NEX shareholders, in the second half of 2018.

This acquisition brings together two trading-industry trailblazers to create a leading, client-centric, global markets company that will deliver better ways to trade and manage risk across futures, cash and OTC products.

Combining NEX's leading electronic FX and fixed income cash execution platforms with CME Group will improve trading technology and streamline access by reducing the number of touchpoints that clients need to trade across products.  In addition, NEX's premier OTC post-trade products and services complement CME Group's derivatives clearing services.  Combining these solutions will strengthen the NEX compression, reconciliation and processing businesses.  The combination will also facilitate the development of innovative post-trade services and data offerings to further enhance cost-effective trading and risk management.

"At a time when market participants are seeking ways to lower trading costs and manage risk more effectively, this acquisition will allow us to create significant value and efficiencies for our clients globally," said CME Group Chairman and Chief Executive Officer Terry Duffy.  "As one organization, we will be able to employ the complementary strengths of each company to serve a wider client base while diversifying our combined businesses across futures, cash and OTC products and post-trade services."