CBOE Holdings, the largest U.S. options exchange, finalized its $3.4 billion takeover of cash equities specialist Bats Global Markets.
The deal, which was announced in September last year, brings under one roof several US derivatives and equities exchanges, a European equities exchange and trade reporting facility and Hotspot.
Significance of acquisition
The new CBOE emerges with an estimated $10 billion market capitalization, which is close to the levels of NASDAQ stock exchange.
“Over the past several months we have been hard at work developing a seamless integration plan, and we are excited to finally bring together our two remarkably talented and innovative teams,” said Edward Tilly, CBOE Holdings Chairman and Chief Executive Officer.
BATS, which was launched in June 2005, offers a variety of successful electronic stock trading products and platforms used by institutional investors and other financiers.
CBOE Holdings is expected to see $50 million in cost synergies, with that number rising to $65 million in five years. The savings will be a consequence of CBOE’s migration to Bats’ trading platform and expense cuts.
Additionally, CBOE will launch new trading products and build upon Bats’ European network to expand its presence.
CBOE’s CEO Edward Tilly will head the combined company, while Chris Concannon (formerly CEO of BATS) will become president and chief operating officer.
CBOE’s leadership team also includes:
• Alexandra Albright, Chief Compliance Officer
• Alan Dean, Chief Financial Officer and Treasurer
• Joanne Moffic-Silver, General Counsel and Corporate Secretary
• Stephanie Klein, Chief Marketing Officer
• Mark Hemsley, President, Europe
• John Deters, Chief Strategy Officer and Head of Multi-Asset Solutions
• Chris Isaacson, Chief Information Officer
• Carol Kennedy, Chief Communications Officer
• Andrew Lowenthal, Head of Global Derivatives
• Greg Hoogasian, Chief Regulatory Officer
• Pamela Culpepper, Chief Human Resources Officer
• Bryan Harkins, Head of U.S. Equities and Global FX
To find out more about the leadership team, visit the new CBOE-BATS integration website www.cboe.com/BatsIntegration.