Banking & Finance

BATS Gets New Post-Lehman Investors, IPO Hopes of Yesteryear

Jon C. Ogg

You probably remember the debacle around the BATS initial public offering (IPO). This is supposed to be the third largest equities exchange, but its IPO cancellation came with a very embarrassing trading halt for Apple because of a single trade down more than 9% under the market, causing a trading halt. BATS was even one of our Top 17 IPOs to Watch for 2012, but this “watch” was followed by a cancelled IPO.

Now it turns out that BATS has decided to take on new investing partners. Spectrum Equity and TA Associates have acquired a stake in BATS Global Markets through the acquisition of all shares held by the Lehman Estate. Financial terms of the acquisition were not disclosed. The press release said:

Spectrum Equity, a leading growth equity firm focused on the information economy, and TA Associates, a leading global growth private equity firm, today announced that they have each acquired a minority stake in BATS Global Markets, Inc. (“BATS”), a leading operator of securities markets in the U.S. and Europe, from Lehman Brothers Holdings Inc.

Dow Jones ran a headline indicating that the BATS IPO is not currently in the exchange’s plans, neither in the short-term nor in the long-term. We will have to see how that plays out.