TMX Group (X) investor relations material

Deal rationale and strategic fit

• Acquisition of Cboe Australia and Cboe Canada for CAD 409 million (US$300 million) aims to expand global presence, especially in APAC, and strengthen the Canadian market position.

• The deal creates a unified global value proposition for dual-market issuers, particularly in mining and energy transition financing, and enhances client experience in listings, trading, and data.

• Establishes a North America-APAC operating footprint, supporting global trading coverage and deeper capital access for issuers.

• Expansion into Australia leverages market similarities and existing relationships, providing a platform for further APAC growth.

• Supports a long-term strategy to grow recurring and international revenue, particularly in data, analytics, and innovation.

Financial terms and conditions

• Total purchase price is $300 million (CAD 409 million), funded through a mix of cash and debt, maintaining a target leverage of 1.5x-2.5x adjusted EBITDA.

• Combined 2025 revenue of acquired businesses is about $87 million, with adjusted EBITDA of $25 million.

• Implied valuation is approximately 16x 2025 adjusted EBITDA.

• Expected to be accretive to adjusted EPS within 12 months of closing, excluding synergies.

Synergies and expected cost savings

• Meaningful cost synergies anticipated in Canada, including operational efficiencies, reduced connectivity and data center costs, and savings for clients.

• Efficiency gains expected to benefit both margins and client costs, with value shared between the company and users.

• Integration of proven product lines and unified technology stack to improve cost efficiency and investor confidence.

• Expected to reduce direct and indirect costs for market participants while improving execution quality and resiliency.