Deutsche Börse acquires Denmark’s SimCorp in €3.9b deal

By Gloria Methri

German stock exchange operator Deutsche Börse is set to take over Danish investment management software SimCorp in a deal valuing the company at €3.9 billion.

Deutsche Börse will finance the SimCorp offer with cash and debt and pay DKK 735 ($109) per share. The offer price represents a 38.9% premium over the closing price of DKK 529 and a 45.3% premium over the three-month volume-weighted average price of DKK 505.7 as of 26 April 2023, respectively.

The combination of SimCorp’s business offering with Deutsche Börse’s Data & Analytics businesses will create a full-scope front-to-back investment management solutions platform. This will allow the German firm to take better advantage of secular industry trends and diversify its business mix with a growing share of recurring revenues.

Deutsche Börse has secured a bridge facility to fully finance the offer. The bridge facility will be refinanced by an optimal mix of existing cash and debt capital market instruments.

Upon completion of the offer, Deutsche Börse aims to accelerate the development of its Data & Analytics segment to drive additional growth and efficiencies. Parallel to the acquisition of SimCorp, Deutsche Börse plans to merge its existing subsidiaries Qontigo and ISS, which deal with data and analysis, under a newly created investment management solutions unit.

Deutsche Börse and General Atlantic have reached a joint understanding in principle on the intended combination aiming to form a high-quality ESG, data, index as well as analytics provider and explore value-creating capital markets options including a potential IPO in the medium term.

Through the completion of SimCorp’s takeover and the intended combination of Qontigo and ISS, the exchange operator will transform its Data & Analytics segment into an Investment Management Solutions segment.