Cboe Global Markets closes BIDS Trading deal

Cboe Global Markets Inc. has completed its acquisition of BIDS Trading LP, a registered broker/dealer and the operator of the BIDS Alternative Trading System.

The acquired entity gives Cboe a foothold in the off-exchange segment of the U.S. equities market, according to a news release. It also offers Cboe an opportunity to expand its global footprint and diversify its product and service offerings.

Following the transaction, BIDS Alternative Trading System will continue to run as an independently managed and operated trading venue. BIDS Trading will continue to operate as an independent business within Cboe Global Markets under the continued leadership of CEO Tim Mahoney.

Terms of the transaction were not disclosed, but Cboe said the purchase price is not material from a financial perspective. The transaction will be immediately accretive to Cboe's earnings, with expected contribution of about 5 cents to 6 cents to adjusted EPS in 2021.

Davis Polk & Wardwell LLP and WilmerHale were legal advisers, and Goldman Sachs & Co. LLC and Centerview Partners LLC served as financial advisers to Cboe. Morgan Lewis & Bockius LLP and Willkie Farr & Gallagher LLP acted as legal advisers of BIDS Trading, with Broadhaven Securities LLC serving as financial adviser.