Deutsche Börse set to take over wealthtech firm SimCorp
Deutsche Börse, operator of the Frankfurt stock exchange, is inching towards closing its €3.9 billion takeover of the investment management software company SimCorp, which is headquartered in Copenhagen, Denmark.
Deutsche Börse prepares to close on SimCorp deal
Recently published final tender results for the all-cash transaction reveal that Deutsche Börse now holds 93.97% of the share capital and voting rights of the acquired company, excluding treasury shares but including open market purchases.
When the deal closes, which is due to happen on 29 September, it will also seek to buy-out any remaining minority shareholders, thus taking complete control of SimCorp.
The tender results also confirm Deutsche Börse’s intention to delist SimCorp from the Copenhagen Stock Exchange, Nasdaq Copenhagen, and will remove its shares from official listing.
The acquisition has been in the works since it was first announced in April, and seeks to merge SimCorp’s data with Deutsche Börse’s investment management solution, which will be created as a result of consolidating its financial intelligence subsidiary Qontigo and its governance, ESG data and analytics subsidiary Institutional Shareholder Services (ISS).
At the time, Deutsche Börse’s CEO, Theodor Weimer, described the acquisition as “a perfect fit strategically and culturally” in line with its pursuit of developing its investment management business, which was further advanced by its March 2022 takeover of the Luxembourg-based fund data manager Kneip Communication.
SimCorp has been on the exchange operator’s radar for some time after the software company formed a partnership with Qontigo back in September 2021 as a means to further optimise the portfolio of its investment management system Dimension.
Weimer added that he expects the takeover of the company, in conjunction with the consolidation of its own subsidiaries, to generate “long-term growth, sizeable and tangible synergies, and a significant increase of our recurring revenues”.
