Stock market operator Singapore Exchange (SGX) announced on Monday that it will pay $128m to wholly acquire a portfolio company, BidFX, the US-based developer of a purchase foreign exchange (FX) platform .
SGX’s Asian Gateway Investments fund paid $25m for a 20% stake in BidFX in April 2019, and the latter’s parent company, TradingScreen, will sell the rest of the shares to SGX in an all-cash deal.
BidFX was founded in 2017 and has built a cloud-based execution management system that allows traders to carry out FX market transactions. Its client base includes asset managers, hedge funds and banks.
SGX chief executive Loh Boon-Chye said: “With BidFX as part of the SGX Group, we can now serve a wider FX community with more comprehensive solutions and enhanced distribution capabilities, while bringing together the two growing and mutually-reinforcing pools of liquidity.”
Jean-Philippe Malé, CEO of BidFX, added: “We are delighted to join the SGX group of companies and combine forces with the largest FX futures marketplace in Asia.
“As we continue to grow, we look forward to contributing to Singapore’s success as a central FX liquidity hub in Asia.”
