Aquis shares soared on Monday after the trading venue and stock exchange announced a takeover by a Swiss counterpart.
Swiss exchange operator SIX Exchange Group AG has announced a recommended cash offer to acquire Aquis Exchange PLC in a deal valuing the London-based exchange at approximately £207 million, or £225 million on a fully diluted basis.
Under the terms of the agreement, Aquis shareholders will receive 727p in cash for each share, representing a substantial premium of 120 percent over the closing price of 330 pence on November 8, 2024.
Aquis shares were 114% higher at 707p at the time of writing.
The acquisition represents a strategic move by SIX to strengthen its pan-European presence and address market fragmentation.
SIX, which operates a fully integrated exchange value chain, views the acquisition as an opportunity to enhance its service offerings across Switzerland, Spain, and international markets.
The Swiss exchange operator particularly values Aquis’ next-generation proprietary exchange technology and sees potential in combining it with SIX’s existing financial market infrastructure and industry experience.
Aquis revenue has grown by 495% since its IPO and achieved a profit of £5.2 million in 2023. However, the Aquis board recognises that the European exchange market remains highly competitive, requiring substantial ongoing investment in technology and distribution to compete with well-resourced peers.
The merger is expected to create a more competitive pan-European listing venue, particularly benefiting small and medium-sized enterprises seeking access to capital markets.
The deal is also expected to enhance execution quality for retail liquidity across Europe and create a more attractive offering for retail brokers by expanding SIX’s universe of tradable securities.