PE firms buy stakes in Bats

Private equity firms Spectrum Equity and TA Associates have both bought minority stakes in Bats Global Markets from Lehman Brothers Holdings. Financial terms have not been disclosed.

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PE firms buy stakes in Bats

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Kansas City-based Bats launched in 2005, with Lehman Brothers buying a minority stake the following year. The holding is reportedly around 12%, making Lehman the second biggest shareholder.

In 2008 Lehman went bankrupt and the bank's estate had intended to slash its holding in Bats in a planned 2012 IPO. However this, notoriously, had to be pulled after a humiliating technical breakdown on the opening day of trading.

Spectrum Equity and TA Associates have now bought Lehman's stake, joining Citi, Credit Suisse, Getco, Morgan Stanley and Nomura as shareholders in the group, which operates two stock exchanges and an options market in the US as well as Bats Chi-X Europe.

Joe Ratterman, CEO, Bats, says: "We're pleased to welcome Spectrum and TA as members of the Bats investment group and look forward to working with them as we continue to play our part to make markets better. We also thank Lehman for their longtime support of Bats and our markets."

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