Deutsche Börse AG on Thursday made an offer of 3.9 billion euro in cash for Danish investment software and data provider SimCorp A/S. The offer is endorsed by SimCorp’s board.
The German stock exchange said it plans to integrate SimCorp into its existing data and analytics business and that the acquisition will allow the creation of a “full scope” front-to-back investment management solutions segment.
SimCorp, listed on the Copenhagen stock exchange, provides services also to a number of leading Luxembourg firms, including Edmond de Rothschild Asset Management, Nomura Bank and Mizuho Trust & Banking. In Luxembourg, Deutsche Boerse last year acquired data firm Kneip.
Deutsche Börse said the combined business “will sit at the heart” of its investment management ecosystem and that it will build on the cooperation initiated in 2021 between SimCorp and its subsidiary Qontigo. Deutsche Börse said that it expects one-off integration costs of around 100 million euro to achieve synergies of about 90 million per year within three years of completion of the offer.
“SimCorp is a perfect fit strategically and culturally,” said Deutsche Börse CEO Theodor Weimer in a statement. “It is one of the leading global investment management software providers, serving the largest asset managers and asset owners worldwide.”
“Deutsche Börse is well-positioned to contribute to the realisation of the long-term potential of SimCorp, and the offer is a clear testament to the strong position and prospects of SimCorp in a global investment industry undergoing fundamental changes and seeing rising demand for integrated technology platforms,” said Peter Schütze, chair of the board of directors at SimCorp A/S.
SimCorp on Thursday also reported first-quarter revenue of 136.3 million euro, up 18.8 per cent from the same period last year, driven by 84 per cent in revenue growth at its Softwards-as-a-Service product.