Deutsche Börse Group has entered into exclusive discussions regarding the potential acquisition of Allfunds. The German stock exchange operator has presented a non-binding proposal, offering €8.80 per Allfunds share, which values the transaction at approximately €5.5 billion.
“There can be no certainty that any transaction will proceed, nor as to the terms or timing of any such transaction,” Deutsche Börse says. “Any transaction would be subject to regulatory approvals. A further announcement will be made as and when appropriate.”
Allfunds is a B2B wealthtech platform that connects financial institutions with asset managers, offering services like fund trading, custody, settlement, and analytics to streamline investment fund distribution and management.
Deutsche Börse competitor Euronext previously made a bid for the company, also priced at €5.5 billion, in February 2023. However, the deal was abandoned a month later, with Reuters reporting that Allfunds’ board rejected the offer due to concerns over insufficient synergies and alignment between the two companies.
Deutsche Börse says its offer remains subject to “the satisfaction or waiver of a number of customary pre-conditions”. These include completed due diligence and transaction documentation, and the final approval of the boards of both companies.
If the buyout proves successful, the group plans to combine Allfunds with its fund services business, a move Deutsche Börse expects to provide “substantial operational efficiencies and cost synergies across platforms and services”, and enable “the rationalisation of investment capacity”.
Allfunds is currently being led by CEO Annabel Spring, a former Morgan Stanley director who succeeded Juan Alcaraz in July this year. Alcaraz founded the business in 2000 and continues to contribute to the business in an advisory capacity.
Source: https://www.fintechfutures.com/
