New York-based private equity firm J.C. Flowers & Co. LLC has agreed to acquire Chi-X Australia, Chi-X Japan and Chi-Tech Hong Kong, from Chi-X Global Holdings LLC. Financial terms of the transaction were not disclosed. The acquisition is expected to close in Q1 2016, pending regulatory clearances.
J.C. Flowers & Co. is exclusively focused on investments in the global financial services sector and has been an active investor in the Asia Pacific region for nearly two decades. The firm’s current investments include Shinsei Bank of Japan; KT Capital Corporation, a Korean non-bank finance company; and SICOM Ltd., a provider of financial solutions and advisory services in India.
“The Chi-X businesses have established themselves as successful and innovative alternatives to primary exchanges,” said Thierry Porte, Managing Director, J.C. Flowers & Co. “Their superior technology, service and trade execution performance will continue to drive positive change and improve markets where they operate. We hope to accelerate this growth through continued enhancements to the platform, including new investment products and markets, and by leveraging our strong relationships throughout the Asia Pacific region.”
“Over the past five years, Chi-X has established itself as an integral part of the financial markets in Asia Pacific through our commitment to competition and innovation. J.C. Flowers & Co. has a deep appreciation for these markets and shares our vision of leveraging technology to develop innovative market-level solutions that enhance investor performance,” said Tal Cohen, CEO of Chi-X Global.
Chi-X Australia, a subsidiary of global market operator Chi-X Global Holdings LLC, offers a valuable alternative for trading ASX securities using its low latency, high performance, proven trading system. Its launch introduced to the Australian market innovative new orders types, the potential for lower costs and a more efficient way to trade.
Chi-X Japan provides investors with a more efficient market alternative through its innovative pricing model, advanced order types, risk management tools and colocation services. As a registered PTS (Proprietary Trading System), Chi-X Japan aims to attract new investors, in turn increasing overall Japanese market volumes, reducing transaction costs and improving investment performance.
Chi-X Global, owned by a consortium of major financial institutions, operates market centers in Australia, Canada and Japan. Chi-Tech, the technology services unit of Chi-X Global, provides technology to its business lines and the Chi-FX.
The name Chi-X is derived from the Greek letter Chi, written X, symbolizing the crossing of the two sides of a trade. Along with the “X” from the English alphabet, the name signifies a combination of the old world and modern world, or traditional securities trading techniques married with cutting-edge technology.
J.C. Flowers & Co. is a leading private investment firm dedicated to investing globally in the financial services industry. Founded in 1998, the firm has invested more than $10 billion of capital in 42 portfolio companies in 15 countries. In addition, J.C. Flowers & Co. has generated more than $4 billion of co-investment opportunities since inception. J.C. Flowers & Co. invests across a range of deal types and industry sectors including banking, insurance and reinsurance, securities, services and asset management, and specialty finance. With approximately $8 billion of assets under management, J.C. Flowers & Co. has offices in New York and London.