September 26, 2016 / 11:45 AM / 3 years ago

BRIEF-CBOE Holdings to acquire Bats Global Markets for about $3.2 bln

Sept 26 (Reuters) - Cboe Holdings Inc :

* CBOE Holdings agrees to acquire Bats Global Markets to strengthen CBOE Holdings’ global position in innovative tradable products and services, and achieve meaningful cost and operational efficiencies

* Transaction is expected to be accretive to CBOE Holdings adjusted EPS in first year following completion of transaction

* Deal expected to be accretive to CBOE Holdings adjusted EPS in first year following completion of transaction

* Deal value of $3.2 billion consisting of 31% cash and 69% CBOE Holdings stock

* Sees approximately $65 million of anticipated expense synergies within five years following deal closing

* Chris Concannon, Bats CEO, will become president and COO, succeeding Edward L. Provost, CBOE Holdings president and COO, who plans to retire at that time

* Bats stockholders will receive $10.00 per share in cash and 0.3201 of a share of CBOE Holdings common stock

* Board of directors of combined company will consist of 11 members from CBOE and 3 from Bats

* Transaction valued at approximately $32.50 per Bats share, or a total of approximately $3.2 billion

* Within three years of completion of transaction, CBOE Holdings expects to realize $50 million in annualized expense synergies

* Edward T. Tilly, CBOE Holdings CEO, will remain CEO of combined company

* Following close of transaction, board of directors of combined company will consist of 14 directors

* Co intends to fund transaction through a mix of stock and debt and has received fully committed financing provided by BofA Merrill Lynch

* CFO Alan J. Dean will remain as CFO of combined company.

* Intends to fund cash portion of consideration and refinancing of Bats’ debt through available cash and new borrowings of $1.65 billion

* Expects to utilize Bats’ trading technology by migrating trading in all of combined co’s markets onto a single platform Source text for Eikon: Further company coverage:

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