TMX Group takes control as MEMX and BOX merge into $2.3B US exchange powerhouse

Canada’s TMX Group is making a bold play south of the border. The parent company of the Toronto Stock Exchange is combining MEMX, the upstart US exchange founded just seven years ago, with BOX Options Market to create a new entity called MEMX Group, valued at roughly $2.3 billion.

TMX is putting up approximately $800 million in cash, plus its existing stake in BOX, to secure about 59% ownership of the combined company.

What the new MEMX Group actually looks like

The combined entity will operate three US options exchanges, one equities exchange, and a market technology business.

Jonathan Kellner, the current CEO of MEMX, will lead the new company. TMX CEO John McKenzie has framed the deal around “complementary strengths and global growth.”

Combined 2025 revenue is expected to hit around $280 million, with adjusted EBITDA of approximately $134 million. That’s a nearly 48% EBITDA margin.

The new MEMX Group is forecasted to capture roughly 10% of US options market volume.

The deal isn’t expected to close until the second half of 2027, pending regulatory approvals.

The backstory matters here

MEMX, short for Members Exchange, was founded in 2019 with a specific mission: shake up the US equities market by enhancing competition and transparency. It launched equities trading in 2020 and expanded into options in 2023.

BOX Options Market has been around since 2008 and has been majority-owned by TMX for most of that time. It handles both electronic and floor-based trading in equity options.

Jane Street, Morgan Stanley, and Citadel Securities are all participating by rolling equity into the deal.

What this means for the broader market

The US exchange landscape has been slowly consolidating for years. Intercontinental Exchange owns the NYSE. Cboe Global Markets runs multiple options and equities venues. Nasdaq operates its own constellation of exchanges.

At $2.3 billion enterprise value for a combination generating $280 million in revenue, the deal implies a roughly 8x revenue multiple.

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