TMX Group: M&A Broadens Index Biz; Deal Looks LSD+ Accretive

Research evidence excerpt

TMX Group: M&A Broadens Index Biz; Deal Looks LSD+ Accretive

Equity Research

U.S. Brokers, Asset Managers & Exchanges

12 June 2026

TMX Group

M&A Broadens Index Biz; Deal

Looks LSD+ Accretive

Last night TMX announced plans to acquire RAFI Indices, X.TO/X CN EQUAL WEIGHT

POSITIVEmeaningfully increasing TMX's index AUM and adding another U.S.ManagersBrokers,& ExchangesAsset

"high growth" business to the mix. The deal is expected to be Price Target CAD 58.00

EPS accretive in year one before synergies. Price (11-Jun-26) CAD 50.11 Potential Upside/Downside +15.7%

Source: Bloomberg, Barclays Research

U.S. Brokers, Asset Managers &

Exchanges

THE EXTEL SURVEY IS CLOSING SOON Benjamin Budish, CFA

+1 212 526 2418

benjamin.budish@barclays.com Support our industry-leading

BCI, US

analysts with 5-Star votes in Chris O'Brien

+1 212 526 9284 the 2026 Extel All-America

chris.obrien@barclays.com

Research Survey. BCI, US

Mason Fleming

+1 212 526 7025

Vote Now View Analysts mason.fleming@barclays.com

Mark McLaughlin, CFA

Overview: Last night TMX announced the pending acquisition of global index provider RAFI +1 212 526 9320

Indices for $490M USD / $683 CAD. RAFI is a provider of index strategies which, in contrast to mark.mclaughlin@barclays.com

BCI, USVettaFi, which focuses on sector-focused themes (energy, robotics, etc.), emphasizes more

fundamental equities and larger market cap strategies. RAFI strategies tend to be a bit counter-

cyclical; in other words, they often employ strategies such as basing weights on economic or

financial indicators (e.g., revenues) rather than market cap. The acquisition of RAFI, which is

expected to close in Q3, was indicated to be "accretive" in its first year post-close (we believe

LSD+ EPS accretion).

RAFI fundamentals.