The offer will see TMX pay 3.49 cents per share for the Sydney-headquartered provider of credit risk software to clearing houses, stock exchanges, financial institutions and brokerages.

The proposal is being unanimously recommended by the Razor board and its major shareholder has entered into a customary lock-up agreement. This gives TMX around 40% of shareholder backing. It needs at least 50.01% within a month for the deal to go through.

Brenda Hoffman, group head, IT, TMX, says: "The acquisition of Razor is exciting because it supports several areas of TMX Group's strategy and it provides a point of entry into the attractive risk management sector. We are very pleased to be joining forces with the Razor employee team to offer our customers enhanced risk management services and products."

Meanwhile, TMX Group's own M&A strategy could be in danger of falling through. In a statement, the Maple Group says that Canada's Commissioner of Competition has warned that she has "serious concerns" about the C$3.73 billion deal.

Maple, a consortium of 13 Canadian banks and pension funds, says that the "current views" of the commissioner contain worries about the "likely competitive effects of the proposed transactions in the current environment, primarily in connection with equities trading and clearing and settlement services in Canada".

However, the commissioner has yet to reach a final decision and Maple and TMX will "work closely with staff of the Competition Bureau to address the Commissioner's concerns, including by identifying appropriate remedial measures".