The pan-European exchange Euronext announced its having finalized the acquisition of 60% of iBabs for €30.1 million. The latter is a Netherlands-based provider of dematerialized board solutions for public organizations and corporations.
iBabs has a client base comprised of a thousand firms and organizations and over 77,000 individuals, according to June 2017 results. Since 2014, the company has disclosed a revenue Compound Annual Growth Rate (CAGR) of 36%. In 2016, the generated revenue was estimated at €5.9 million. The earnings before interest, taxes, depreciation and amortization (EBITDA) that year alone were €3.8 million. In the first half of 2017, revenues had increased by 29% on a year-on-year basis.
Stéphane Boujnah, Chairman and CEO of the Managing Board of Euronext NV, said that the purchase of the majority of iBabs’ shares means that corporations and organizations will operate more efficiently: “It also demonstrates our commitment to deliver growth and profitability to shareholders through a strict M&A discipline. The entrepreneurial spirit and commercial drive of the iBabs team coupled with the concrete response its services provide to day-to-day corporate needs, make us extremely confident in our ability to further roll out the iBabs offering throughout all Euronext markets.”
Paul Neefjes, CEO of iBabs, also commented regarding the two entities’ shared goal. “We want to make meetings and governance more efficient for the largest number of organizations, and together with Euronext we aim to develop a true pan-European business. Having become the leading player for board portal solutions in the Netherlands, Euronext’s support will enable us to broaden and accelerate our development.”
Last week, Euronext released its monthly volumes for June 2017, revealing that commodities derivatives average daily volume had increased by 63.3 percent on a month-on-month basis. The reason appears to be the increase in wheat prices and volatility following the heatwave that struck France.