German exchange operator Deutsche Börse is set to acquire Denmark’s SimCorp, a leading global investment management software provider, in a deal worth €3.9 billion. The acquisition will create a new investment management solutions segment within Deutsche Börse, which will benefit from cross-selling opportunities and ESG offering strengthening.
Facts
- Deutsche Börse will acquire SimCorp for €3.9 billion, valuing the company at DKK 735.0 ($109) per share.
- SimCorp’s board of directors unanimously recommends shareholders accept the offer.
- SimCorp offers scalable investment management SaaS and BPaaS solutions.
- Deutsche Börse will merge its existing subsidiaries Qontigo and ISS with SimCorp to create a new investment management solutions segment.
- Deutsche Börse expects total annual run rate EBITDA synergies of around €90 million within three years of the deal, with a one-off cost of around €100 million to achieve these synergies.
- Around €55 million of the expected synergies are cost synergies, and around €35 million are revenue synergies.
- Deutsche Börse CEO Theodor Weimer sees SimCorp as a perfect fit strategically and culturally and expects the acquisition to enhance the company’s investment management business.
