MEMX LLC, an exchange operator backed by Jane Street and Morgan Stanley , will combine with equity options market BOX in a deal that gives control of the merged entity to Canada’s leading stock exchange group .
The new MEMX Group is valued at US$2.3 billion, TMX Group Ltd. announced Thursday. The Toronto-based company is investing US$800 million in cash, plus its existing BOX stake, into the combination, and will hold a 59 per cent interest.
“It’s been a long road in terms of making this transaction to come together because there are a lot of stakeholders in it,” chief executive John McKenzie said in an interview on Friday. “All of our biggest clients are active and massive in the United States. So this was a way for us to make sure we’re serving clients on a North American basis.”
TMX Group shares advanced 1.8 per cent to $52.66 in Toronto as of 1:17 p.m. on Friday.
The deal represents the third acquisition for TMX in 2026. It agreed to buy Cboe Global Markets Inc.’s Australian and Canadian units in April, and RAFI Indices LLC in June.
In a note to clients, TD Cowen analyst Graham Ryding said the MEMX transaction adds to execution risk and pushes TMX’s leverage 3.4 times debt to earnings before interest, taxes, depreciation and amortization.
McKenzie said the firm has the balance sheet capacity to complete the deal and that leverage is within the same range as it was with prior transactions. They’ve also brought in a new team to help with the merger, he added.
TMX expects the Cboe Australia deal to close imminently, McKenzie said. The regulatory process is still in progress for the Cboe Canada purchase.
The MEMX transaction is expected to close in the second half of 2027. It’s supported by existing investors including Jane Street, Morgan Stanley, Citadel Securities and Schwab, among others.