SYDNEY, SAN FRANCISCO, NEW YORK – 24 June 2019 – Today the boards of Commodity Bourses Limited (CBL), trading as CBL Markets, and Xpansiv Data Systems, Inc. (Xpansiv) announced that they have signed an agreement to combine companies. This will be executed through an implementation deed, under which CBL will acquire all Xpansiv common and preferred stock in exchange for the issue of new securities in CBL. Upon transaction close—which is subject to a number of conditions and expected to finalize in July 2019—the combined companies will operate under a unified holding company named Xpansiv CBL Holding Group, with Joe Madden as CEO and John Melby as President and COO. Will Stewart will replace Donald Putnam as Chairman, with Larry Leibowitz as Vice Chairman (Mr. Putnam will remain on the board).
The proposed merger has been unanimously approved by both boards and is backed by major shareholders of both entities, including BP, The Chalice Fund, S&P Global, Avista Development, Inc., Energy Innovation Capital (EIC), Cambooya, Thomas H. Lee, and Phillip Muhlbauer. The proposed transaction does not result in a change of control for CBL shareholders.
CBL’s market-leading energy and environmental commodity spot exchange will be enhanced by Xpansiv’s ability to convert raw commodity production information into Intelligent Commodities™. These new assets will increase information access for all participants in the commodity ecosystem, opening up a range of new product and market opportunities.
“With both companies at the forefront of innovation, this will be a game-changer for commodity markets,” said Will Stewart, Executive Chairman. “CBL’s integrated exchange platform will provide a clear, regulatory-compliant pathway to market for Xpansiv’s revolutionary technology and products, transforming the global commodity markets for the better.”
CBL’s market participants will benefit from a suite of new data-driven products, starting with Responsibly Produced Natural Gas. This is in addition to the exchange’s existing products that display transparent order depth, straight-through processing, ease of settlement, advanced information technology, and seamless interface to registries.
“The merger will enable market participants to make more informed decisions based on a wealth of new information,” said Ben Stuart, who will drive group sales as Chief Commercial Officer. “Market participants will benefit from a more diverse product offering, including access to new tradeable products that have never been available before.”
“Commodity markets were designed more than a century ago for a resource-rich, data-poor world,” said CEO Joe Madden. “Today, we live in a data-rich, resource-constrained world, and there is growing market demand for more information and differentiated products in commodity markets. Xpansiv CBL Holding Group will be a driving force in the market transformation that is already underway.”
The merger also comes with an injection of additional capital from existing shareholders, which will support the company’s aggressive acquisition strategy. “We look forward to executing on our M&A pipeline, which will accelerate the growth of the combined organic business,” said Nathan Rockliff, who will lead the initiative as Chief Strategy Officer. “It is also expected to provide long-term value creation for shareholders by capitalising on opportunities to build and acquire holistic solutions.”
“The complementary nature of these two teams and what they can deliver is enormous,” said President and COO John Melby, who served on both boards prior to the merger. “If you follow the trends, market participants are looking for authenticated information to make better decisions. This merger helps clients capitalize on these growth trends, and will put Xpansiv CBL Holding Group at the forefront of the digital commodity marketplace.”
Completion of the proposed transaction is subject to the satisfaction of a number of conditions.
About CBL Markets
CBL Markets provides access to the world’s energy and environmental commodity markets, facilitating the secure and seamless trading of commodities like carbon, renewable energy, water, and gas. cblmarkets.com
Xpansiv transforms primary production data into Digital Feedstock™, a new data format that delivers secure, comprehensive information to global markets. For the first time, commodities can be traded in a digital format that includes a deeper accounting of their true cost and value. xpansiv.com