Deals
Bats Buys Hotspot Currencies Platform for $365 Million
Joseph "Joe" Ratterman, president and chief executive officer of Bats Global Markets, speaks during a Bloomberg Television interview in New York, on Aug. 28, 2013.
Photographer: Scott Eells/BloombergThis article is for subscribers only.
Bats Global Markets Inc. is buying a currency-trading venue, making its first foray into the $5.3 trillion market and diversifying its sources of income.
The stock-exchange operator has agreed to acquire Hotspot FX from KCG Holdings Inc. for $365 million in cash, according to statements from both companies. The deal values Hotspot at 16 times its earnings before interest, taxes, depreciation and amortization in 2014, a person with direct knowledge of the deal said.