TMX Group and MEMX announced a strategic combination of MEMX and BOX into a new entity, the MEMX Group, with an implied transaction value of approximately $2.3 billion. TMX Group will make an equity investment of approximately $800 million and contribute its existing equity interest in BOX, resulting in an approximate 59% ownership interest in the combined business.
The newly combined company will hold three exchange medallions and operate three US listed options exchanges, an equities exchange, and a technology business. This strategic move aims to significantly enhance MEMX's capabilities and scale by merging two leaders in the US listed options market. MEMX and BOX generated a combined revenue of approximately $280 million and Adjusted EBITDA of around $134 million in 2025.
The transaction is supported by ongoing strategic investments from existing MEMX investors, including Chicago Trading Company (CTC), IMC, Jane Street, Morgan Stanley, Optiver, Schwab, and Virtu Financial. Interactive Brokers (IBKR), an existing investor in BOX, as well as Citadel Securities and Wolverine, who are investors in both MEMX and BOX, will also contribute. Markets Infrastructure Partners (MIP) will provide an equity investment. The deal is expected to close in the second half of 2027, pending regulatory approval and customary closing conditions.
TMX Group and minority equity holders will be granted call and put rights, respectively, starting three years post-close. The combined business will continue to operate independently after the transaction is completed, creating a consolidated U.S. exchange group with greater scale and expanded offerings.
