Deutsche Borse to buy Axioma
April 10, 2019

Speed read

• Deutsche Börse to acquire Axioma for US$850 million and combine it with its index businesses (STOXX and DAX) valued at EUR 2.6 billion into a new company

• Strategic partnership with General Atlantic as a minority investor in the new company 

• Highly complementary combination creates a uniquely positioned buy-side intelligence leader and growth company with expected synergy opportunities of around EUR 30 million

• Entrepreneurial leadership team to be led by Axioma CEO Sebastian Ceria

Deutsche Börse AG (Deutsche Börse) and Axioma, Inc (Axioma) have announced that Axioma has agreed to be acquired by Deutsche Börse for US$850 million cash and debt free (around $820 million equity value) and will be combined with Deutsche Börse's index businesses (STOXX and DAX) valued at EUR 2.6 billion. 

They say the combination will create a fully integrated, leading buy-side intelligence player that will provide unique products and analytics to meet the growing demand for an end-to-end platform. They add that Axioma, a global provider of cloud-based portfolio and risk management software solutions, and Deutsche Börse's index business, are highly complementary and together will offer a broad suite of index and analytics products with global coverage.

As a result, the combined company is expected to materially grow revenue and EBITDA (earnings before interest, tax, depreciation and amortization), and is expected to achieve annualized pre-tax run-rate synergies of around EUR 30 million by the end of 2021.

As part of the transaction, Deutsche Börse has entered into a strategic partnership with General Atlantic, a leading global growth equity investor. General Atlantic will invest around $715 million into the new company, which will be used to finance the acquisition of Axioma.

Theodor Weimer, CEO of Deutsche Börse, said: "This transaction is a step change for our pre-trading business and fully in line with our Roadmap 2020 strategy, which besides organic growth builds on programmatic M&A and new technologies. We are also excited about the partnership with General Atlantic and believe it will help to further accelerate growth of the combined business and to achieve strong value creation."

Stephan Leithner, Member of the Executive Board of Deutsche Börse AG, responsible for the Post-Trading, Data & Index business, added: "We are convinced of the highly complementary nature of the combination, which positions us extremely well to benefit from key growth trends. We have a long-standing strategic partnership with Axioma and value its management. We look forward to growing our analytics and index platform together."

Sebastian Ceria, founder and CEO of Axioma, said: "The union of Axioma, STOXX and DAX under the Deutsche Börse umbrella creates a growth company that is uniquely equipped to help clients capitalize on the critical trends now reshaping the investment-management landscape. The combination of STOXX's indexing expertise with Axioma's best-of-breed analytical capabilities in risk management, portfolio construction and performance attribution is expected to result in strong near-term revenue synergies and creation of a platform for future growth."

Gabriel Caillaux, Managing Director and Head of EMEA at General Atlantic, stated: "We have closely followed the development of Deutsche Börse's index assets for many years as we witness the global shift to passive products and the rise of indexed investing strategies. We…believe this combination provides a strong foundation for future growth. After our detailed analysis, we are confident that the combination will generate significant value creation and strong investor returns."





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Speed read

• Deutsche Börse to acquire Axioma for US$850 million and combine it with its index businesses (STOXX and DAX) valued at EUR 2.6 billion into a new company

• Strategic partnership with General Atlantic as a minority investor in the new company 

• Highly complementary combination creates a uniquely positioned buy-side intelligence leader and growth company with expected synergy opportunities of around EUR 30 million

• Entrepreneurial leadership team to be led by Axioma CEO Sebastian Ceria

Deutsche Börse AG (Deutsche Börse) and Axioma, Inc (Axioma) have announced that Axioma has agreed to be acquired by Deutsche Börse for US$850 million cash and debt free (around $820 million equity value) and will be combined with Deutsche Börse's index businesses (STOXX and DAX) valued at EUR 2.6 billion. 

They say the combination will create a fully integrated, leading buy-side intelligence player that will provide unique products and analytics to meet the growing demand for an end-to-end platform. They add that Axioma, a global provider of cloud-based portfolio and risk management software solutions, and Deutsche Börse's index business, are highly complementary and together will offer a broad suite of index and analytics products with global coverage.

As a result, the combined company is expected to materially grow revenue and EBITDA (earnings before interest, tax, depreciation and amortization), and is expected to achieve annualized pre-tax run-rate synergies of around EUR 30 million by the end of 2021.

As part of the transaction, Deutsche Börse has entered into a strategic partnership with General Atlantic, a leading global growth equity investor. General Atlantic will invest around $715 million into the new company, which will be used to finance the acquisition of Axioma.

Theodor Weimer, CEO of Deutsche Börse, said: "This transaction is a step change for our pre-trading business and fully in line with our Roadmap 2020 strategy, which besides organic growth builds on programmatic M&A and new technologies. We are also excited about the partnership with General Atlantic and believe it will help to further accelerate growth of the combined business and to achieve strong value creation."

Stephan Leithner, Member of the Executive Board of Deutsche Börse AG, responsible for the Post-Trading, Data & Index business, added: "We are convinced of the highly complementary nature of the combination, which positions us extremely well to benefit from key growth trends. We have a long-standing strategic partnership with Axioma and value its management. We look forward to growing our analytics and index platform together."

Sebastian Ceria, founder and CEO of Axioma, said: "The union of Axioma, STOXX and DAX under the Deutsche Börse umbrella creates a growth company that is uniquely equipped to help clients capitalize on the critical trends now reshaping the investment-management landscape. The combination of STOXX's indexing expertise with Axioma's best-of-breed analytical capabilities in risk management, portfolio construction and performance attribution is expected to result in strong near-term revenue synergies and creation of a platform for future growth."

Gabriel Caillaux, Managing Director and Head of EMEA at General Atlantic, stated: "We have closely followed the development of Deutsche Börse's index assets for many years as we witness the global shift to passive products and the rise of indexed investing strategies. We…believe this combination provides a strong foundation for future growth. After our detailed analysis, we are confident that the combination will generate significant value creation and strong investor returns."



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