Aquis Exchange has accepted a £194m takeover offer from Swiss-based stock exchange operator SIX Group.

The offer values Aquis shares at 727p per share, a 120 per cent premium to Friday’s closing price of 330p per share.

Directors at Aquis, which is a challenger to the London Stock Exchange, said the deal would help provide the scale needed to compete against bigger firms in the European exchange market.

“Under SIX’s ownership, Aquis will be better placed to deliver on its strategy of developing innovative capital market solutions from a position of further scale,” it said.

SIX said the acquisition was a “compelling strategic opportunity” which will complement its strategy to “scale the business beyond its home markets”.

“The combination will add Aquis’ strong offering to our traditional primary exchange and data businesses, complementing SIX’s existing growth listing segments,” Bjørn Sibbern, global head of exchanges at SIX, said.

Alasdair Haynes, chief executive of Aquis, said he was “immensely proud” of the business which he founded back in 2012.

Although he said there was a “clear path of growth ahead,” he suggested that there were “operational, commercial and market risks” with the timing of any future exit from the company.

“The offer de-risks this future value creation and provides Aquis Shareholders with certain value at a material premium,” he added.

The deal is expected to conclude in the second quarter of next year.