CME Group, the worlds largest futures exchange, agrees deal to acquire Michael Spencer’s Nex for £3.9bn

CME Group, which operates the world’s largest futures exchange, announced this morning that it has agreed to buy Nex Group, the London-listed tech company which provides electronic trading platforms, for £3.9bn.

CME agreed to pay shareholders of Nex – formerly known as Icap – £10 per share, consisting of £5 in cash and 0.0444 CME shares.

Nex’s founder, well-known City entrepreneur Michael Spencer, will join CME’s board of directors, acting as a special adviser to the group and working with key clients as an ambassador.

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“The combination of Nex and CME will be an industry-changing transaction. Bringing together cash and futures products and over-the-counter services will be unique, offering clients improved access to trading, greater financial efficiencies and highly valuable data sets,” said Spencer.

“CME’s decision to choose London as its European headquarters is also a signal of tremendous support for Britain’s financial services sector.”

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The boards of both companies unanimously agreed on the deal – if shareholders also approve, it should close in the second half of this year.

CME said that Nex’s electronic foreign exchange and fixed income cash execution platforms would help it improve its technology and “streamline access by reducing the number of touchpoints that clients need to trade across products”.

Meanwhile Nex’s over-the-counter post-trade services would “complement” CME’s derivatives clearing.

By the end of 2021, the deal is expected to produce savings of $200m (£142m).

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