Deutsche Börse AG to Acquire Axioma for $850 Million, To Create Index Analytics Business
Deutsche Börse AG is buying Axioma, for $850 million, and will be merging it with its index businesses to form a new index analytics company.
German exchange operator, Deutsche Börse AG is buying Axioma, an analytics specialist company for $850 million, and will be merging it with its index businesses to form a new index analytics company.
As a part of the deal agreement, General Atlantic will be taking 19 per cent stake in the new company for $715 million, Deutsche Börse will own 78 per cent and rest 3 per cent will be held by Axioma management for reinvesting around $105 million.
The US-based Axioma will be merged with Deutsche Börse’s index businesses, Stoxx, and Dax in a new company with a total valuation of EUR 2.6 billion and will be led by Axioma current CEO Sebastian Ceria.
The exchange in its statement said that Axioma will be a good fit with its index business and the combined entity will help in creating a buy-side intelligence player and is expected to create an annualised pre-tax run-rate synergies of around EUR 30 million by the end of FY 2021.
Deutsche Börse’s Stoxx business generated around €144 million in sales in 2018 and EBITDA of €100 million.
Axioma in its statement said that it is uniquely equipped to address the emerging trends that are reshaping the investment management, including a shift to passive, demand for smart beta and transition towards index customisation using technology.
Axioma was founded in 1998 and provides a multi-asset class portfolio and risk management software. It claims to have more than 400 assets managers, sell-side participants and hedge funds as customers. In 2018, the company generated $100 million in revenue and had 240 employees under its roll.
Sebastian Ceria commented:
“The combination of Stoxx’s indexing expertise with Axioma’s best-of-breed analytical capabilities in risk management, portfolio construction and performance attribution is expected to result in strong near-term revenue synergies and creation of a platform for future growth.”
The deal is expected to be close in the third quarter of 2019 and is subject to different market regulators.
Reporting by Karthik Subramanian. Filed 10 April 2019, 12:05 GMT.
Digital Assets Correspondent
Karthik Subramanian is a founder, writer, and technology consultant with nine years in the crypto ecosystem.
