Miami International Holdings, the holding company of Princeton-based MIAX Exchange Group, and Minneapolis Grain Exchange, announced on Friday they have agreed to merge.
Under terms of the deal, MIH will acquire MGEX in an all-cash deal and MGEX will become a wholly-owned subsidiary of MIH. The acquisition of MGEX will significantly diversify MIH’s product portfolio by giving MIH a futures exchange and clearing facility.
“This strategic combination achieves our goal of diversifying our product and service offerings with attractive benefits to our existing and new member firms while simultaneously creating exciting new revenue drivers,” Thomas P. Gallagher, chairman and CEO of MIH, said. “MGEX provides MIH with a well-established futures platform on which to continue our expansion and puts MIH in control of our own product ecosystem, allowing us to list both options and futures on new products that will be exclusive to our exchanges.”
Established in 1881, MGEX is one of the oldest Designated Contract Market and Derivatives Clearing Organization in America, having more than 400 seats and focusing on trades in agricultural products.
“We believe that combining with MIH is the best outcome for our members and futures trading community as a whole. No other exchange group is better positioned for future growth, and this acquisition provides MGEX with the resources and scale necessary to further strengthen our product offerings and innovation to drive top-line and bottom-line growth. I, along with all of my MGEX colleagues, look forward to becoming part of the MIH family,” Mark G. Bagan, CEO and president, MGEX, said.
The deal is expected to close in late 2020.
“While we will immediately begin pursuing new opportunities to bring innovative products to MGEX, we understand and respect the importance and the significance of an exchange with a history and legacy such as MGEX’s. To this end, MIH remains committed to maintaining and preserving MGEX’s heritage and existing operations, including with respect to the hard red spring wheat contracts,” Gallagher said.
