Miami International Holdings and MGEX Announce Plan of Merger; MGEX to Join MIAX Exchange Group

PRINCETON, New Jersey and MINNEAPOLIS, Aug. 14, 2020 /PRNewswire/ -- Miami International Holdings (MIH), the parent holding company of the MIAX Exchange Group, and the Minneapolis Grain Exchange (MGEX), a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), today announced that they have entered into a definitive agreement and plan of merger under which MIH has agreed to acquire MGEX for a combination of cash and MIH common stock following a demutualization of MGEX by its members. As a result of the acquisition, MGEX will become a wholly owned subsidiary of MIH. MIH will continue to maintain the trading and clearing operations of MGEX, including its hard red spring wheat contract, while adding new futures products.

This transaction is expected to close in late 2020. The Board of Directors of each company unanimously approved the transaction and it is subject to MGEX membership approval and customary closing conditions including certain regulatory approvals.

MGEX, established in 1881, is one of the oldest trading venues in America, with more than 400 seats, historically concentrated on trading in agricultural products, including hard red spring wheat contracts. The acquisition of MGEX significantly diversifies MIH's product portfolio by immediately providing MIH with a futures exchange and clearing facility.

"This strategic combination achieves our goal of diversifying our product and service offerings with attractive benefits to our existing and new member firms while simultaneously creating exciting new revenue drivers," stated Thomas P. Gallagher, Chairman and Chief Executive Officer of MIH. "MGEX provides MIH with a well-established futures platform on which to continue our expansion and puts MIH in control of our own product ecosystem, allowing us to list both options and futures on new products that will be exclusive to our exchanges."

MGEX President and Chief Executive Officer Mark G. Bagan commented, "We believe that combining with MIH is the best outcome for our members and futures trading community as a whole. No other exchange group is better positioned for future growth, and this acquisition provides MGEX with the resources and scale necessary to further strengthen our product offerings and innovation to drive top-line and bottom-line growth. I, along with all of my MGEX colleagues, look forward to becoming part of the MIH family."