CBOE Holdings Inc. confirmed Monday that it has agreed to buy Bats Global Markets Inc. in a cash and stock deal that valued at about $3.2 billion. Under terms of the deal, which is expected to consist of 31% cash and 69% CBOE stock, CBOE will pay $32.50 for each Bats share outstanding, which is a 2.2% premium to Friday’s closing price. Bats’ stock had shot up 20% on Friday after Bloomberg News reported the companies were in merger talks. CBOE expects the deal, which it is anticipating closing in the first half of 2017, to add to adjusted earnings per share in the first year, and lead to $50 million in synergies within three years. “We expect the acquisition to enhance the trading experience by streamlining access for customers and to allow CBOE Holdings to provide greater scale, while significantly increasing operational and cost efficiencies,” said CBOE Chief Executive Edward Tilly. Bats’ stock gained 2.2% in premarket trade, while CBOE’s slipped 0.2%. Year to date, CBOE shares have climbed 8.3% and the S&P 500 has advanced 5.9%. Bats went public on April 15.
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