Deutsche Börse confirmed its non-binding offer for fund distribution network Allfunds, enhancing its fund services business to create a pan-European ecosystem.
The market infrastructure provider said an acquisition of private equity backed-Allfunds would reduce fragmentation in the European investment fund industry and create a harmonised business with global reach, playing a key role in further facilitating the investment of retail savings into investment funds.
Allfunds’ network connects financial institutions and provides software that allows clients to screen and trade different investment funds through a centralised platform, as well as providing fund houses with reporting tools to track assets and fund flows.
Deutsche Börse added the combination is expected to deliver substantial operational efficiencies and cost synergies across platforms and services, enable the rationalisation of investment capacity, and drive further innovation for clients with even faster time-to-market.
“The proposed transaction would be in line with Deutsche Börse’s strategy and further emphasises its ongoing commitment and efforts to strengthen European capital markets and its global competitiveness as envisioned by the Savings and Investments Union (SIU).”
The non-binding proposal is for €8.80 per Allfunds share, comprising €4.30 in cash and €4.30 in new Deutsche Börse Group shares base, which values the company at Eu5.3 bn.
The transaction is subject to regulatory approvals and the completion of customary due diligence, the finalisation of definitive transaction documentation and final approval of the Deutsche Börse and Allfunds Boards.
