Cboe acquired NEO for US $255.6M plus up to US $54.3M in earnout

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By CPE News

CPE News Brief (7.29.2022) – On November 15, 2021, Cboe Global Markets, Inc. (Cboe: CBOE) announced the entering into a definitive agreement to acquire Aequitas Innovations, Inc. (NEO). The acquisition closed on June 1, 2022. Financial terms were not disclosed at the time.

Cboe has finally disclosed its purchase price for NEO.

Cboe disclosed that of NEO acquisition’s estimated purchase price, $132.4 million was allocated to goodwill, $130.1 million was allocated to intangible assets, negative net working capital of $6.9 million, and $54.3 million in contingent consideration, which will be earned based on developmental milestones of the acquired NEO business. (all dollar figure in US $).

Aequitas Innovations was formed in 2015 following the fallout of the failed attempted acquisition of Toronto Stock Exchange (TSX) by London Stock Exchange (LSE).

Aequitas Innovations’ backers/shareholders included Barclays, CI Investments, IGM Financial, ITG Canada, BCE, OMERS Capital Markets, PSP Investments, RBC Dominion Securities, British Columbia Investment Management Corporation (BCi), Davis Rea Ltd, Ivesco Canada, Leede Jones Gable, Maison Placements Canada, and Vernon & Park Capital.

photo credit: Cboe Global Markets