Deutsche Börse Acquires Majority Stake in Quantitative Brokers

This will strengthen the buy-side presence of the German financial market operator.

Germany’s Deutsche Börse announced on Thursday that it has taken a controlling stake in Quantitative Brokers, a fintech offering execution algorithms and data-driven analytics for financial markets.

This comes when the German stock exchange is gearing to make some major acquisitions, including Borsa Italiana, with its 2 billion euros acquisition fund.

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“We are investing in a growth business with a renowned, innovative and leading quant team delivering a unique set of competencies in algorithmic execution,” Thomas Book, head of the trading and clearing division of Deutsche Börse and also a member of the executive board, said.

Strategic Acquisition to Strengthen Market Presence

Quantitative Brokers has operations in New York, London, Sydney, and Chennai, and its offerings cover global futures, options, and interest rate markets. The company is expecting its 2020 revenue to be around $25 billion.

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With the acquisition, the entire team of the company will join its new German parent. However, the financial details of the recent acquisition are not known. This will strengthen Deutsche Boerse’s presence in the buy-side of the trades.

“The QB team is thrilled to join Deutsche Börse’s portfolio of strategic companies to further accelerate our institutional client uptake and global expansion across markets and asset classes,” Quantitative Brokers’ co-founder and CEO, Christian Hauff said. “Our partnership with a 30 billion-dollar, global, multi-asset exchange group will provide even greater momentum to our growth plans.”

Despite Deutsche Börse’s acquisition, the co-founders of Quantitative Brokers will retain significant holding on the company. Furthermore, Hauff will continue to be its CEO and the other co-founder, Robert Almgren, as the chief scientist. 

“Deutsche Börse’s global relationships with buy and sell-side customers will help us add value to an even broader range of clients. Our intelligent solutions will provide them with additional tools to better manage order execution in an increasingly complex market environment,” Almgren added.

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