April 22 (Reuters) – Cboe Global Markets said on Wednesday it will sell its Canadian and Australian equities exchanges to the TMX Group for $300 million, as the exchange operator sharpens its focus on higher-growth areas such as derivatives, digital assets and prediction markets.
The deal includes Cboe Canada and Cboe Australia and marks a key step in the company’s strategic realignment announced in October last year, when it said it would explore a sale of the two businesses as part of a broader portfolio review.
Cboe Chief Executive Craig Donohue said the deal would allow the company to reallocate resources and capital toward strengthening its core businesses for further growth and profitability, while pursuing opportunities in new and emerging areas.
In July last year, Cboe also decided to wind down its Japanese equities business, citing evolving business conditions that challenged the financial sustainability of maintaining its equities operations in the country.
The transaction is subject to customary closing conditions, including regulatory approvals, and the acquisitions of Cboe Australia and Cboe Canada are expected to close separately after the required approvals are obtained.
Barclays is acting as financial adviser to Cboe, while Sidley Austin, Blake, Cassels & Graydon and Mallesons are serving as legal counsel.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Nivedita Bhattacharjee)
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