Numis founder heads investment consortium for NEX Exchange

Oliver Hemsley will take over from current NEX Exchange chief executive Patrick Birley upon completion of the deal.

Oliver Hemsley has led an investment consortium that will take majority control of NEX Exchange in a deal valued at £20 million.

The founder of Numis Securities will take over from current NEX Exchange chief executive Patrick Birley as a result of the investment, which will see the consortium reportedly pump £10.5 million in the business in exchange for a 55% stake.

The new funds will be used to “develop and grow the business”, which provides competition for London Stock Exchange’s AIM.

The deal is expected to complete in the second half of fiscal year 2018/19, pending approval from the Financial Conduct Authority.

“We are pleased to have secured new investment in NEX Exchange to further develop the business and enhance our offering for SMEs,” said NEX Group chief executive, Michael Spender. “We thank Patrick Birley for his excellent contribution to the business since our 2012 acquisition and we look forward to working with Oliver Hemsley as he takes the business to the next stage of its growth.”

In March, US futures exchange operator CME and NEX Group reached an agreement which will see CME acquire NEX for £3.9 billion.

Following completion of the buyout, expected in the second half of this year, NEX CEO Michael Spencer will join the CME board of directors and remain with the combined business as a special advisor, working to drive the integration and creation of the new company.

In mid-September the UK’s Competition and Markets Authority announced it was launching an investigation in the CME-NEX deal, which will be approved or referred for a more in-depth investigation by 8 November.