TMX Group (X) big dogged the bidders for Cboe Canada by coming over the top with a $409M bid for both it and Cboe’s Australian business, representing ~16x LTM EBITDA - slightly below where it trades…

… supporting management’s decision to finance with the balance sheet. The multiple is pre-synergies, with duplicate systems and connectivity costs creating margin upside in the Canadian exchange unit…

… while the Australian footprint is more strategic, given its heavier skew towards higher margin recurring and data revenue. With a less mature ETF industry, VettaFi looks well-positioned…

… as is the capital formation business, which should benefit from new fund issues and corporate listings…

… with Cboe’s recently granted license laying the groundwork for TMX to double down on its dominant position in mining.