TMX Group to acquire Cboe Global’s Australian and Canadian operations for $300 million

TMX Group on Wednesday reached an agreement to acquire the Australian and Canadian operations of Cboe Global Markets for $300 million. This strategic move significantly broadens the reach of the Toronto Stock Exchange operator within the global mining sector.

"(This deal) allows us to build into a new market on the other side of the world that happens to be the second strongest mining resource market in the world. So it is such a strong, natural fit for us," TMX CEO John McKenzie said in an interview, referring to Australia's position in the global mining industry.

The acquisition, which encompasses the Cboe Australia and Cboe Canada exchanges, is designed to accelerate TMX's expansion into high-growth segments including digital assets, derivatives, and prediction markets. According to company data, Cboe’s units in these two regions produced roughly $87 million in revenue throughout 2025, yielding adjusted EBITDA of approximately $25 million.

TMX Chief Financial Officer David Arnold informed market analysts on Wednesday morning that the transaction is expected to be funded through a mix of available cash and new debt.

For Cboe, the divestiture represents a major milestone in a strategic reorganization first disclosed last October. At that time, the firm initiated a comprehensive portfolio assessment that included the potential sale of these specific international units. This follows Cboe's decision in July of last year to exit its Japanese equities business, a move prompted by shifting market conditions that impacted the local operation’s financial viability.

Cboe CEO Craig Donohue stated that this deal permits the organization to redirect capital and specialized resources toward its primary business lines. This focus is intended to bolster long-term profitability while the company explores emerging industry opportunities.

The deal remains subject to standard closing requirements and regulatory reviews. TMX expects the acquisitions of the Canadian and Australian entities to conclude individually as specific approvals are granted.

"It did create a competitive process in terms of a lot of players that showed interest in the assets, but it also allowed us to have kind of advanced discussions with regulatory bodies, both in Canada and Australia," he said.

Canaccord Genuity and Macquarie Capital provided financial advice to TMX, while Barclays served as Cboe's advisor. Legal representation included Sidley Austin and Baker McKenzie.

In February, TMX's CEO said the IPO pipeline in Canada remains strong with about 1,600 companies at varying stages to list.

Canada's strength in the mining sector and strong commodity prices have kept IPO interest high, with listings expected to rebound after only two new companies entering the TSX in Toronto last year, CEO John McKenzie had said.

He also said up to half of the 1,600 companies are from outside Canada, with many attracted to TMX's venture ecosystem that allows early-stage companies to raise capital.

The exchange has actively courted potential listings overseas, McKenzie said.

"We have been engaged in the Middle East. That's an area that is actually transitioning to more of a mining economy ... We have resources that are on the ground in multiple jurisdictions, like South America, like Australia, good resource economies," McKenzie said.