CME Group To Buy NEX Group For GBP 10/share - Quick Facts

(RTTNews) - CME Group Inc. (CME) announced Thursday that it has reached an agreement to acquire NEX Group plc (NXG.L) for 10 pounds per share.

The per share price consists of 500 pence in cash and 0.0444 CME Group shares, based on CME's closing share price of $158.84 on March 28.

Bloomberg reported Wednesday, citing people familiar with the matter, that CME Group was in advanced talks to buy NEX for about 4 billion pounds or $5.7 billion.

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.

The acquisition would create a major client-centric, global markets company that will deliver better ways to trade and manage risk across futures, cash and OTC products. The deal produces $200 million in run-rate cost synergies annually by end of 2021.

Following completion of the acquisition, NEX CEO Michael Spencer will join the CME Group Board of Directors. He will remain with the combined company as a Special Adviser.

J.P. Morgan is acting as lead financial advisor and Barclays is acting as financial advisor to CME Group, and Skadden, Arps, Slate, Meagher & Flom LLP is acting as CME Group's legal advisor.