Aquis Exchange PLC (LON:AQX) is to buy the small cap exchange NEX from CME for £1 plus up to £2.7mln for working capital adjustments.
NEX is one of only four equities-focused Recognised Investment Exchanges (RIEs) in the UK and has 89 companies currently listed on its two markets that are worth £1.9bn.
The acquisiton gives an opportunity to acquire an RIE business with a focus on primary markets said the technology-led Aquis.
Its share trading platform can transform NEX Exchange at a time when MiFID II implications and other factors make the industry ripe for innovation, it added.
NEX generated revenues of £1.51mln and a loss before tax of £2.05mln in 2018, but cost savings will reduce the loss in the short-term believes Aquis.
Alasdair Haynes, Aquis chief executive, said: "Our stated aim is to become the leading technology-driven exchange services group, and this acquisition is a milestone towards delivering this vision.
"We have a successful blueprint of proven technology and are confident that we can not only deliver growth but we can also positively address the current issues in small and mid-cap trading."