Spectrum Equity, a leading growth equity firm focused on the information economy, and TA Associates, a leading global growth private equity firm, today announced that they have each acquired a minority stake in BATS Global Markets, Inc. (“BATS”), a leading operator of securities markets in the U.S. and Europe, from Lehman Brothers Holdings Inc.
BATS, founded in 2005, regularly ranks as the world’s third-largest equities exchange company, operating two stock markets in the U.S., as well as BATS Chi-X Europe, that region’s largest exchange. The firm also operates the BATS Options market in the U.S. and offers a primary listings business for exchange-traded products.
“BATS has established itself as an innovative firm committed to enhancing market efficiency and leveling the playing field for all investors,” said Chris Mitchell, Managing Director at Spectrum Equity, who will serve as a director on the BATS Board in connection with the transaction. “We look forward to supporting this talented management team in driving BATS’ continued growth and continuing to foster advances in markets worldwide.”
“BATS has consistently delivered best-in-class solutions for the United States’ cash equities and equity options markets and the pan-European cash equities market,” said Ken Schiciano, a Managing Director at TA Associates. “BATS' talented management team and proprietary high-performance technology have enabled the company to maintain its market share and position the company for future growth. Given TA’s successful history of investing in the financial technology sector, we are looking forward to partnering with the BATS management team.”
Joe Ratterman, CEO of BATS Global Markets, said “We’re pleased to welcome Spectrum and TA as members of the BATS investment group and look forward to working with them as we continue to play our part to make markets better. We also thank Lehman for their longtime support of BATS and our markets.”
Rosenblatt Securities Inc. served as an advisor to Spectrum and TA in connection with the transaction. Financial terms of the acquisition were not disclosed.