Throughout the analyst call with CBOE Holdings and Bats regarding today’s announced acquisition of Bats by CBOE there were references to CBOE’s reluctance to enter the mergers and acquisition space, but it turns out they were just looking for the right partner.
CBOE Holdings Inc. and Bats Global Markets Inc. announced that they have entered into a definitive agreement, which has been approved by the Board of Directors of each company by unanimous votes of the members of the boards present, under which CBOE Holdings has agreed to acquire Bats in a cash and stock transaction valued at approximately $32.50 per Bats share, or a total of approximately $3.2 billion, consisting of 31% cash and 69% CBOE Holdings stock, based on CBOE Holdings’ closing stock price of $70.30 per share on Sept. 23, 2016.
BATS Global Markets priced its IPO at $19 per share, at the top of the range, valuing BATS at $1.8b. Selling shareholders increased offering from 11.2m to 13.3m shares, representing $253m. BATS started trading under the ticker BATS.