The Luxembourg Stock Exchange, also known as LuxSE, has booked a one-time gain of 170 million euro on the sale of its data subsidiary Fundsquare, it said following its annual general meeting on Friday.
The sale of Fundsquare to FE fundinfo, a London-based provider of investment fund data and technology, was completed last September. LuxSE acquired an unspecified ownership stake in FE fundinfo following that transaction.
“In an environment shaped by increasing competition and market consolidation, Fundsquare needed to be part of a bigger group to reach its full potential and FE fundinfo has the resources and network to make sure Fundsquare can expand internationally,” said Julie Becker, CEO of LuxSE, in a statement.
LuxSE established Fundsquare in 2013 to serve global asset managers and fund industry service providers and facilitate cross-border fund distribution through the collection and distribution of data and information in a cost-effective manner. Given the increasing importance of data in financial markets LuxSE last year opted to make its subsidiary part of a larger specialised group and opted for FE fundinfo.
LuxSE 2026 Strategy
The Luxembourg Stock Exchange said it will invest part of the 170 million euro profit in the implementation of the strategic roadmap, the LuxSE 2026 strategy, defined at the end of 2022. That roadmap includes a vision to “become the world’s leading sustainable finance and information solution provider,” it said.
“The strategy centres on accelerating growth in our core businesses of listing, trading and data, while capitalising on LuxSE’s expertise in ESG and experience in DLT, and exploring new domains such as private markets,” said Alain Kinsch, president of the board of directors of LuxSE. “We will focus on organic growth but also explore opportunities for partnerships, joint ventures or acquisitions.”
For the financial year 2022, LuxSE reported 0.3 percent growth in operational revenue, to 38.2 million euro.