TMX Group is an integrated, multi-asset class exchange group whose businesses include the Toronto Stock Exchange, the TSX Venture Exchange, The Montreal Stock Exchange and TMX Datalinx, the Group’s information services division. In 2011 TMX acquired the ultra-low latency, vendor-neutral extranet infrastructure provider known as Atrium Network, and in 2014 TMX added Strike Technologies and combined it with Atrium. Strike offered ultra-low-latency wireless connectivity to financial services customers. Together these businesses operated under the TMX Atrium brand and offered fast, reliable delivery of real-time market data to and from liquidity venues in 30+ countries around the globe.
Marlin & Associates has had a significant history with TMX Group. Among other things, Marlin advised Atrium Network on its sale to TMX In 2011. Recently, as TMX Group began to shift strategic focus, they reached out to Marlin & Associates to advise the Group on options for TMX Atrium.
To advise TMX, M&A established a team of bankers with domain knowledge of the capital markets infrastructure space and a track record of advising on successful financial technology transactions. The team included some who had advised on Atrium’s sale to TMX Group in 2011. They worked with TMX Group and Atrium management to craft materials that highlighted the financial and strategic value of the business; assisted in the preparation and review of the company’s financial forecasts; developed a focused list of the most likely strategic and financial partners; managed initial conversations, information exchange and subsequent meetings with several of them, and coordinated due diligence reviews.
Following a thorough review of potential options, TMX Group decided to accept an offer from the Intercontinental Exchange (“ICE”) to acquire the Atrium business and combine it with ICE.
Once the transaction is complete, ICE plans to integrate TMX Atrium into its existing network infrastructure business – which includes the NYSE SFTI network and offer secure, low latency network connectivity to more than 150 venues.
Marlin & Associates served as exclusive strategic and financial advisor to TMX Group on a complex cross-border corporate carve-out. M&A led the preparation of detailed transaction marketing materials, conducted initial discussions with interested parties, facilitated information exchange, advised on the negotiation and evaluation of alternative offers, managed preliminary and confirmatory due diligence reviews, and coordinated the preparation of final legal documents.
Eric Sinclair, President, TMX Datalinx and Group Head of Information Services, said: “Throughout this process, the team at Marlin & Associates provided great financial and strategic advice. They served as a true strategic partner and integral part of the team as they guided the complex cross-border carve-out project. The Marlin & Associates team’s unique industry expertise played a critical role in bringing this transaction to a successful conclusion for all stakeholders.”