Deutsche Boerse's Record-Breaking Acquisition of Allfunds: A Strategic Leap

Deutsche Boerse has announced a historic 5.35 billion euro deal to acquire the Allfunds trading platform. This strategic acquisition aims to establish Deutsche Boerse as a leading provider of financial market infrastructure in Europe. The deal promises significant synergies and expected shareholder benefits.

Deutsche Boerse, the German stock exchange operator, has secured a landmark acquisition of the Amsterdam-listed fund trading platform Allfunds, valued at 5.35 billion euros, equivalent to $6.25 billion. This significant move reflects Deutsche Boerse's strategy to expand its influence, driving a 3.2% rise in its shares at Thursday's market open.

CEO Stephan Leithner announced the deal, labeling it part of Deutsche Boerse's ambition to be a European leader in financial market infrastructure. The acquisition offer included 6 euros in cash plus 0.0122 Deutsche Boerse shares per Allfunds share. Allfunds shareholders stand to benefit from a 0.20 euro dividend, leading to a 3.9% rise in its shares on Thursday.

The deal places Allfunds' share value at a 32.5% premium, boosting its valuation to approximately 4.79 billion euros. Deutsche Boerse anticipates significant cost synergies and savings, with expectations to complete half by 2028. The transaction aims to close in the first half of 2027, following scrutiny from key shareholders Hellman & Friedman and BNP Paribas.

(With inputs from agencies.)