Jos Schmitt said in an interview Neo’s acquisition by the global securities- and options-exchange operator will strengthen Canada’s capital markets by giving international investors greater ability to back domestic companies. (The Logic)

Talking point: “There’s a lot of opportunity with respect to Canadian corporates where we can give them access to more capital outside of Canada,” Schmitt said, noting that Cboe pursued the deal largely for Neo’s corporate-listing business. “Their vision is to create a global derivatives and securities network.” Neo, which has operated since 2015, has attracted businesses in up-and-coming sectors like cannabis, psychedelics and cryptocurrency, as well as a large number of exchange-traded funds. Neo evaluated different options for its growth, including private fundraising or an initial public offering, and concluded that the deal with Cboe was the best fit, Schmitt said. The terms of the deal weren’t disclosed, but Schmitt said the size of the acquisition is “immaterial” relative to Cboe’s market capitalization of over US$14 billion.