- TMX Group (TSX:X), the financial stock behind the TSX and TSXV, has acquired Newsfile Corp., the largest Canadian-owned news and regulatory filing company
- The addition diversifies TMX away from its core stock listing business and enhances its resilience to market volatility
- TMX Group operates global markets, builds digital communities and develops analytic solutions that facilitate the funding, growth and success of businesses, traders and investors
- TMX Group stock has added 36 per cent year-over-year and just shy of 80 per cent since 2019
TMX Group (TSX:X), the financial stock behind the TSX and TSXV, has acquired Newsfile Corp., the largest Canadian-owned news and regulatory filing company.
Newsfile, established in 1997, serves more than 2,500 public and private clients and houses filings from SEDAR+, SEDI, EDGAR, and in eXtensible Business Reporting Language (XBRL). It is the only Canadian owned and operated newswire service approved by the TSX.
The acquisition will expand TMX Group’s Capital Formation business’ public and private company offering.
Leadership insights
“TMX Group is committed to delivering best-in-class products and services; we are always looking at ways to add new capabilities to better serve our clients today and well into the future,” Loui Anastasopoulos, chief executive officer of the TSX and global head of capital formation at TMX Group, said in a statement. “The acquisition of Newsfile, a client-first newswire and regulatory filing solutions provider, bolsters our capital formation business as we continue to expand our offerings beyond listings.”
“We are excited to join forces with TMX Group, an organization whose client-first mindset aligns with ours,” said Bill Batiuk, president of Newsfile. “By combining Newsfile’s strengths with the brand, reach and scale of TMX, we are confident that we can continue Newsfile’s long track record of growth, innovation and exemplary client service.”
What you get if you invest in TMX Group today
TMX Group’s primary stock listing business caters to 3,450 issuers as of Q1 2024, granting it the No. 1 spot among North American exchange peers and the No. 2 spot globally.
Over the past five years, the company has grown into its leadership position by consistently adding revenue, adjusted EBITDA, free cash flow and net income, as shown in its most recent investor brochure.
Strong cash flow has allowed TMX to pursue new initiatives in high-growth areas, including indexing and analytics and energy solutions, which have given it the confidence to set a double-digit earnings per share compound annual growth rate as its long-term goal.
About TMX Group
TMX operates global markets, builds digital communities and develops analytic solutions that facilitate the funding, growth and success of businesses, traders and investors. Besides the TSX and TSXV, the company operates the TSX Alpha Exchange, The Canadian Depository for Securities, the Montréal Exchange, Canadian Derivatives Clearing Corporation, TMX Trayport and TMX VettaFi.
TMX Group (TSX:X) is up by 0.12 per cent, trading at C$40.87 per share as of 10:50 am ET. The stock has added 36 per cent year-over-year and just shy of 80 per cent since 2019.
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(Top image: TMX Group)