CBOE Holdings, Inc. (NASDAQ: CBOE) announced today that it has entered into a definitive agreement to acquire the market data services and trading analytics platforms of Livevol, Inc., a leading provider of equity and index options technology and market data services to professional and retail traders.
The acquisition, which has been approved by the board of directors of both CBOE Holdings, Inc. and Livevol, Inc., is expected to close by June 30, 2015. Financial terms of the deal were not disclosed.
According to the agreement, CBOE Holdings will acquire the Livevol Core, Livevol Pro and Livevol X trading analytics platforms, as well as Livevol Enterprise and other market data solutions products. Livevol Securities, Inc., the company's broker-dealer unit, is not included in the deal. The acquired properties will become subsidiaries of CBOE Holdings upon completion of the deal. Livevol's 17 employees will join CBOE Holdings.
As a result of the acquisition, CBOE will have the ability to expand its scope of market data services to include Livevol's innovative platforms and robust trading analytics. Livevol's options trade analysis and volatility modeling technologies are a natural fit with CBOE's offerings of trade support services. The deal will also enable CBOE to leverage the synergies between the two companies by customizing Livevol data and analytics capabilities to provide customers with greater insight to CBOE products and services. As an example, Livevol platforms would be tailored to provide more detailed trading analytics on CBOE's proprietary index products, including options on the CBOE Volatility Index® (VIX® Index), S&P 500 Index (SPX), Russell 2000 Index (RUT) and MSCI Emerging Markets Index (MXEF).
"We welcome the Livevol team to CBOE. The acquisition of Livevol's innovative market analytics platforms will significantly expand CBOE Holdings' presence in the market data services business," said CBOE Holdings CEO Edward T. Tilly. "We are pleased to be able to provide our customers with convenient access to an even greater range of data and analytics to further support index options and volatility trading at CBOE."
"The Livevol team is pleased to join CBOE," said Livevol, Inc. CEO Catherine Clay. "Livevol is a leader in trading analytics and CBOE is the leader in options and volatility trading. Our combined expertise will enable us to expand and grow the data services we provide to market participants."
The acquisition will be funded with existing cash; and while it is not expected to be material in terms of revenue or earnings per share for 2015, the company expects the acquisition to be accretive to earnings per share in 2016.
The platforms to be acquired in the transaction include:
- Livevol Pro – a web-based equity and option analysis software with features that include real-time and historical data, alerts, market scanners and calculations used to identify potential trading opportunities.
- Livevol X – a high-performance trade execution platform that combines the functionality of the Livevol Pro front-end interface with advanced trading capabilities and sophisticated risk management analytics.
- Livevol Enterprise – a data distribution platform via a custom API architecture that allows users to receive and display data and analytics in any format within their own system. The system also provides historical data files, intraday strategy scan files and other custom data-sets.
Livevol, Inc. provides professional and retail traders with cutting-edge tools, data and custom analytics services. Livevol offers a spectrum of technology and data solutions, including a consolidated feed, real-time programmable analysis and scanning, historical files and back testing, real-time decision support, flat files, XML web services and other web components.