Deutsche Börse Group is taking over Luxembourg-based fund data specialist Kneip Communication S.A. for an undisclosed amount in order to expand its offerings in the data services space and to develop an international fund data hub based in the Grand Duchy.
This partnership forms the basis for creating a leading fund data hub based in Luxembourg, the companies said in a joint statement.
Philippe Seyll, head of investment fund services at Deutsche Börse Group, said the acquisition is “a unique opportunity to create a leading European fund data champion based in Luxembourg.”
“Through Kneip’s global reach and broad range of services, we will be able to further develop our product and service offerings and add value for funds clients at every stage of their business,” Seyll said.
Strong growth in recent years
Kneip, founded in 1993 by Luxembourg entrepreneur Bob Kneip, has become recognised as a leader in fund data management and regulatory reporting solutions for international assets managers. The company has experienced strong growth in recent years, also under the leadership of its chairman Hughes Delcourt, and has made a number of acquisitions in other European countries, including Dataglide in the UK, which it acquired in January.
Kneip manages investor disclosure and data publication for more than 10,000 funds in over 40 countries, including the production of over 200,000 reporting solutions, and currently services over 30 percent of EU-based fund ISINs.
“This partnership will benefit our clients, our teams and reinforce Luxembourg’s position as the leading cross-border fund centre in the world,” said Bob Kneip, owner and vice-chairman of the board of Kneip.
Fund services, data key areas for growth
Deutsche Börse said it considers fund services and data to be key areas for future growth. It said it intends to grow its market position organically via further investment in its existing businesses, and through targeted acquisitions.
Kneip will seek to further scale the business and expand its range of services inside Deutsche Börse Group, including data and post-trade services provided by Clearstream, the companies announced.
“Clearstream has a long history of driving innovation within the financial sector and shares our vision, values and our commitment to customer service,” said Enrique Sacau, who joined Kneip as CEO in 2020. “Deutsche Börse’s scale and resources will broaden our portfolio and boost our ability to deliver more value to clients faster.”
Integration into Deutsche Börse’s platforms
Frankfurt-based Deutsche Börse also intends to connect Kneip’s services with its established fund services platforms. The focus, it said, will be on significantly simplifying the process of data management and services for asset managers and other market participants across the fund ecosystem.
The transaction is expected to be completed by the end of March this year, the companies announced on Monday.
The shareholders of Kneip were advised by Raymond James as exclusive financial advisor, Norton Rose Fulbright as legal counsel, and Alvarez & Marsal as financial and tax due diligence provider. The management of Kneip were advised by PwC.
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