LMAX Exchange (LMAX) has completed an equity purchase of Paddy Power Betfair’s remaining stake in the business.
The 31.35% stake (or 187,811 shares), bought for £21,945,000, brings 95% of the company under the control of the group’s management.
The equity purchase is financed by a senior debt facility provided by Silicon Valley Bank (SVB), a bank focused solely on the innovation economy. The terms of the loan are not disclosed.
David Mercer, CEO of LMAX comments: “I am very pleased to be working with Silicon Valley Bank. SVB’s focus on the innovation economy resonates perfectly with LMAX Exchange growth story and future ambition – this creates a solid foundation for our partnership going forward. Having successfully built a global exchange marketplace for FX, our ambition is to continue growing our distribution and propagate the exchange execution model across capital markets.”
He adds: “By consolidating the ownership of LMAX Exchange Group, we are positioning the business for continued growth and building long term stakeholder value.”
Rosh Wijayarathna, director of Silicon Valley Bank’s corporate banking team, says: “We work with innovative businesses that are global by nature, so managing their FX exposure is an ever important factor. As the world gets smaller and the FX industry grows, the market is increasingly a focus for global regulators. LMAX Exchange is an impressive high-growth global business, which brings greater transparency to the FX industry through the exchange execution model, no ‘last look’ functionality and award-winning low latency technology. We are delighted to work with such an experienced management team and look forward to a continued partnership.”