Bats Global Markets, Inc.

Robbins LLP: Acquisition of Bats Global Markets, Inc. (BATS) by CBOE Holdings, Inc. (CBOE) May Not Be in Shareholders’ Best Interests

Robbins LLP is investigating the proposed acquisition of Bats Global Markets, Inc. (Bats: BATS) by CBOE Holdings, Inc. (NASDAQ: CBOE). On September 26, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which CBOE Holdings will acquire Bats Global. Under the terms of the agreement, Bats Global shareholders will receive $10.00 in cash and 0.32 shares of CBOE Holdings, the value of which is equivalent to $32.50 for each share of Bats Global common stock.

Is the Proposed Acquisition Best for Bats Global and Its Shareholders?

Robbins LLP’s investigation focuses on whether the board of directors at Bats Global is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.

As an initial matter, the $32.50 merger consideration represents a premium of only 22.50% based on Bats Global’s last unaffected closing price on September 22, 2016. This premium is significantly below the average one day premium of nearly 30.11% for comparable transactions within the past year.

On August 4, 2016, Bats Global reported strong earnings results for its second quarter 2016. Bats Global reported revenue of $109.9 million for the three months ended June 30, 2016, an 11% increase from the same period of the prior year. Bats Global also reported adjusted earnings per share of $0.35 for the three months ended June 30, 2016, a 35% increase from the same period of the prior year. Bats Global has also beaten analyst estimates for adjusted net income, revenue, and adjusted earnings per share in their first two quarters of public trading. In commenting on these results, Bats Global Chief Executive Officer Chris Concannon remarked, “The second quarter marked another strong quarter for Bats as we continued to deliver strong organic net revenue growth. This revenue growth was driven by a 14% increase in non-transaction revenue, record market share in our U.S. Options business, and increasing net capture rates. In addition, we continued to see success in our U.S. ETF Listing business as we welcomed 23 new listings and three transfers over the quarter to the Bats ETF Marketplace.”

In light of these facts, Robbins LLP is examining Bats Global’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.

Bats Global shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.

Bats Global shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.

Send us a message for more information.

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