Deutsche Börse to acquire Denmark’s SimCorp in €3.9bn deal
German exchange operator Deutsche Börse is set to acquire Denmark’s SimCorp in a deal valuing the company at €3.9 billion.
Deutsche Börse set to acquire SimCorp
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-months volume-weighted average price of DKK 505.7 as of 26 April 2023, respectively.
SimCorp’s board of directors has unanimously decided to recommend to shareholders to accept the offer.
SimCorp offers scalable investment management SaaS (Software-as-a-Service) and BPaaS (Business-Process-as-a-Service) solutions.
Deutsche Börse intends to merge its existing data and analytics subsidiaries Qontigo and ISS and group the two firms with SimCorp under a newly created investment management solutions unit.
This new unit will benefit from upselling and cross-selling opportunities, Deutsche Börse says, as well as a strengthened ESG offering.
Within three years of the deal, Deutsche Börse expects total annual run rate EBITDA synergies of around €90 million, of which around €55 million would be cost synergies and around €35 million would be revenue synergies, with a one-off cost of around €100 million.
Deutsche Börse CEO Theodor Weimer says the firm has spent the past couple of years enhancing its data and analytics capabilities with a focus on developing its investment management business.
“SimCorp A/S is a perfect fit strategically and culturally,” Weimer adds.
