TMX Group to combine MEMX and BOX in U.S.$2.3 billion exchange deal

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TMX, MEMX & BOX exchange deal

Highlights

TMX Group will own 59% of a new $2.3 billion entity formed by combining MEMX and BOX, with funding including $800 million in cash and existing stakes.
The merged company will control three exchange medallions and operate three options exchanges, an equities exchange, and a technology business supporting market infrastructure.
MEMX and BOX account for 10% of U.S. listed options volume and are projected to generate $280 million revenue and $134 million adjusted EBITDA in 2025.

Deal structure and funding plan

As reported by TMX Group, MEMX has entered a definitive agreement under which TMX will make a strategic investment in the exchange operator while BOX is combined with MEMX. TMX Group is expected to hold about 59% of the combined company, which will operate independently after the transaction closes and is expected to be funded through roughly U.S.$800 million in cash, TMX’s existing BOX stake, rollover equity from MEMX and BOX investors, and an investment from Markets Infrastructure Partners.

The new entity is set to have an enterprise value of about U.S.$2.3 billion. It will hold three exchange medallions and operate three U.S. listed options exchanges, an equities exchange, and a technology business that provides market technology and operational support to other market centers.

MEMX CEO Jonathan Kellner is to lead the combined company. The transaction is expected to close in the second half of 2027, subject to regulatory approval, while TMX Group and minority equity holders are to receive call and put rights, respectively, beginning three years after closing.

Options market scale and shareholder implications

The combination brings together two operators that say they represent about 10% of U.S. listed options volume, strengthening MEMX’s position across different trading models, including BOX’s electronic and floor-based options trading. TMX said the deal is intended to deepen its presence in the U.S. options market and support the development of new products and services across both options and equities.

Financial figures in the announcement show MEMX and BOX generated combined revenue of about U.S.$280 million and adjusted EBITDA of about U.S.$134 million in 2025. The investor group backing the transaction includes existing MEMX investors such as Chicago Trading Company, IMC, Jane Street, Morgan Stanley, Optiver, Schwab and Virtu Financial, as well as Interactive Brokers, Citadel Securities and Wolverine.

Cboe Global Markets’ second-quarter 2026 results highlighted how strong derivatives activity and recurring data revenue can materially lift an exchange operator’s performance. Our earlier article noted record net revenue driven by record index options volumes, alongside growth in cash markets and data services, and an upgraded full-year outlook—signaling sustained momentum in the U.S. options ecosystem.

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