Group wants to create new Investment Management Solutions division.
In a separate update, the company reported increasing profit in the latest quarter.
Deutsche
Börse Group, the operator of the German stock exchange, published two important
updates on Thursday concerning the results for the first quarter of 2023 and
the acquisition of SimCorp, a provider of investment management solutions.
In response
to the latest reports, the company's shares on the German stock exchange (XETR: DB) are losing nearly 7% and falling to EUR 170, the lowest monthly level.
On the other hand, SimCorp (CPH: SIM) is in the process of increasing by 38%.
Deutsche Börse Announces
Acquisition and Launch of New Segment
Deutsche
Börse AG announced a voluntary recommended public offer to acquire all shares
(except for its own shares) of SimCorp A/S at 735.0 DKK per share in a
transaction fully financed by debt. Thus, SimCorp A/S is valued at EUR 3.9 billion.
Parallel to
the acquisition of SimCorp A/S, Deutsche Börse AG plans to merge its existing
subsidiaries Qontigo and ISS, which deal with data and analysis, under one
leadership. Upon completion of the offer, the merger of Qontigo and ISS and
SimCorp A/S will be grouped within the newly created Investment Management
Solutions segment to drive further growth, efficiency, and full crystallization
of value.
"Both
transactions will bring long-term growth, sizeable and tangible synergies, and
a significant increase of our recurring revenues," Theodor Weimer, the CEO
of Deutsche Börse AG, said. "We would be delighted to welcome SimCorp A/S,
which has been a trusted business partner for many years, to Deutsche Börse
Group and to embark on this exciting journey together."
After the
offer is finalized, Deutsche Börse AG anticipates achieving annual EBITDA
synergies of EUR 90 million within a span of three years. This includes EUR 55
million in cost synergies and EUR 35 million in revenue synergies. However,
it's important to note that there will be a one-time cost of approximately EUR
100 million to attain these synergies.
Deutsche
Börse's shares are falling to EUR 170, losing about 7% on Thursday. Meanwhile,
shares of SimCorp listed on the Danish stock exchange are gaining nearly 40%
and rising to DKK 732, which is the highest since January 2022.
Details of the Deutsche
Börse Transaction
The offer
price for SimCorp represents a premium of 38.9% and a premium of 45.3% compared to
the closing price of 529.0 DKK and a 3-month volume-weighted average price of
505.7 DKK, respectively, as of 26 April 2023.
The Board
of Directors at SimCorp A/S has unanimously decided to recommend shareholders
of SimCorp A/S to accept the offer once it is made public. Based on anticipated
annual synergies, the transaction is projected to yield mid-single-digit cash
earnings per share in the first year following its completion.
"The
Board of Directors finds that the offer from Deutsche Börse AG represents attractive
value for the shareholders of SimCorp A/S," Peter Schütze, the Chair of the
Board of Directors of SimCorp A/S, said.
"Deutsche
Börse AG is well-positioned to contribute to the realization of the long-term
potential of SimCorp A/S, and the offer is a clear testament to the strong
position and prospects of SimCorp A/S in a global investment industry
undergoing fundamental changes and seeing rising demand for integrated
technology platforms."
Deutsche Börse Group
Starts 2023 with Growth
In addition
to information about the acquisition of SimCorp, the Group published its
latest quarterly report for the last three months of 2023. It reveals that net
revenues in this period increased 16% to EUR 1.231 billion and EBITDA 12%
to EUR 772 million.
"Strong
net revenue growth is due partly to secular growth of 7% and also to cyclical
effects of 9%," Deutsche Börse commented in a statement.
The net profit
attributable to shareholders was EUR 473 million, translating to an increase of 12% compared to last year's quarter. Before considering purchase price allocation, earnings per share amounted to EUR 2.70, which signifies a 13% increase.
The results
are consistent with the report for the full year of 2022, in which Deutsche
Börse's net profit increased 24% to EUR 1.6 billion. Additionally, the
results for the fourth quarter were better than the same period a year ago. Net
revenue rose to EUR 1.168 billion, which is a 25% increase compared to the previous
year's €943 million, and net profit was €378 million.
In one of
the latest updates, Deutsche Börse's crypto startup Crypto Finance AG
announced its partnership with Apex Group, a financial services provider. The
alliance aims to offer institutional-grade digital assets products.
Deutsche
Börse Group, the operator of the German stock exchange, published two important
updates on Thursday concerning the results for the first quarter of 2023 and
the acquisition of SimCorp, a provider of investment management solutions.
In response
to the latest reports, the company's shares on the German stock exchange (XETR: DB) are losing nearly 7% and falling to EUR 170, the lowest monthly level.
On the other hand, SimCorp (CPH: SIM) is in the process of increasing by 38%.
Deutsche Börse Announces
Acquisition and Launch of New Segment
Deutsche
Börse AG announced a voluntary recommended public offer to acquire all shares
(except for its own shares) of SimCorp A/S at 735.0 DKK per share in a
transaction fully financed by debt. Thus, SimCorp A/S is valued at EUR 3.9 billion.
Parallel to
the acquisition of SimCorp A/S, Deutsche Börse AG plans to merge its existing
subsidiaries Qontigo and ISS, which deal with data and analysis, under one
leadership. Upon completion of the offer, the merger of Qontigo and ISS and
SimCorp A/S will be grouped within the newly created Investment Management
Solutions segment to drive further growth, efficiency, and full crystallization
of value.
"Both
transactions will bring long-term growth, sizeable and tangible synergies, and
a significant increase of our recurring revenues," Theodor Weimer, the CEO
of Deutsche Börse AG, said. "We would be delighted to welcome SimCorp A/S,
which has been a trusted business partner for many years, to Deutsche Börse
Group and to embark on this exciting journey together."
After the
offer is finalized, Deutsche Börse AG anticipates achieving annual EBITDA
synergies of EUR 90 million within a span of three years. This includes EUR 55
million in cost synergies and EUR 35 million in revenue synergies. However,
it's important to note that there will be a one-time cost of approximately EUR
100 million to attain these synergies.
Deutsche
Börse's shares are falling to EUR 170, losing about 7% on Thursday. Meanwhile,
shares of SimCorp listed on the Danish stock exchange are gaining nearly 40%
and rising to DKK 732, which is the highest since January 2022.
Details of the Deutsche
Börse Transaction
The offer
price for SimCorp represents a premium of 38.9% and a premium of 45.3% compared to
the closing price of 529.0 DKK and a 3-month volume-weighted average price of
505.7 DKK, respectively, as of 26 April 2023.
The Board
of Directors at SimCorp A/S has unanimously decided to recommend shareholders
of SimCorp A/S to accept the offer once it is made public. Based on anticipated
annual synergies, the transaction is projected to yield mid-single-digit cash
earnings per share in the first year following its completion.
"The
Board of Directors finds that the offer from Deutsche Börse AG represents attractive
value for the shareholders of SimCorp A/S," Peter Schütze, the Chair of the
Board of Directors of SimCorp A/S, said.
"Deutsche
Börse AG is well-positioned to contribute to the realization of the long-term
potential of SimCorp A/S, and the offer is a clear testament to the strong
position and prospects of SimCorp A/S in a global investment industry
undergoing fundamental changes and seeing rising demand for integrated
technology platforms."
Deutsche Börse Group
Starts 2023 with Growth
In addition
to information about the acquisition of SimCorp, the Group published its
latest quarterly report for the last three months of 2023. It reveals that net
revenues in this period increased 16% to EUR 1.231 billion and EBITDA 12%
to EUR 772 million.
"Strong
net revenue growth is due partly to secular growth of 7% and also to cyclical
effects of 9%," Deutsche Börse commented in a statement.
The net profit
attributable to shareholders was EUR 473 million, translating to an increase of 12% compared to last year's quarter. Before considering purchase price allocation, earnings per share amounted to EUR 2.70, which signifies a 13% increase.
The results
are consistent with the report for the full year of 2022, in which Deutsche
Börse's net profit increased 24% to EUR 1.6 billion. Additionally, the
results for the fourth quarter were better than the same period a year ago. Net
revenue rose to EUR 1.168 billion, which is a 25% increase compared to the previous
year's €943 million, and net profit was €378 million.
In one of
the latest updates, Deutsche Börse's crypto startup Crypto Finance AG
announced its partnership with Apex Group, a financial services provider. The
alliance aims to offer institutional-grade digital assets products.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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