J.C. Flowers & Co. LLC, an active investor in the Asia-Pacific (APAC) region for over two decades, has entered into a definitive agreement to acquire a trifecta of Chi-X groups, including Chi-X Australia, Chi-X Japan and Chi-Tech Hong Kong, according to a Chi-X Global statement.
J.C. Flowers & Co. is a worldwide financial group that has been particularly active in the M&A sector in recent years. More specifically, the group has maintained investments in such markets as Japan, Korea, and Indian, including finance and advisory companies throughout the APAC region.
The acquisition is important for J.C. Flowers & Co as it will help the group tap into the Australia and Hong Kong markets, which have all experienced robust demand in recent quarters. As such, each acquired subsidiary will help bolster the group’s APAC focus via the respective domestic market penetrations.
The immediate financial terms of the acquisition were not disclosed at this time and the transaction itself is slated to close sometime by the end of Q1 2016, pending regulatory obligations.
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According to Tal Cohen, Chief Executive Officer (CEO) of Chi-X Global, in a recent statement on the acquisition: “We are pleased to announce that J.C. Flowers & Co. has agreed to acquire Chi-X Australia, Chi-X Japan and Chi-Tech. Over the past five years, Chi-X has established itself as an integral part of the financial markets in Asia Pacific through our commitment to competition and innovation.”
“J.C. Flowers & Co. has a deep appreciation for these markets and shares our vision of leveraging technology to develop innovative market-level solutions that enhance investor performance. We believe that Chi-X will continue to deliver greater choice and cost-effective solutions to investors and issuers as J.C. Flowers & Co. builds on the Chi-X brand,” he added.
“The Chi-X businesses have established themselves as successful and innovative alternatives to primary exchanges. Their superior technology, service and trade execution performance will continue to drive positive change and improve markets where they operate,” noted Thierry Porte, Managing Director, J.C. Flowers & Co. in an accompanying statement.
“We hope to accelerate this growth through continued enhancements to the platform, including new investment products and markets, and by leveraging our strong relationships throughout the Asia Pacific region.”
Chi-X Global has not been shy about offloading its regional subsidiaries in recent months. Back in November 2015, the group sold off its Chi-X Canada arm, an Alternative Trading System for the Toronto Stock Exchange (TSX) and TSX Venture Securities, to Nasdaq.