Deutsche Börse has reached an agreement to acquire an 80% interest in Institutional Shareholder Services (ISS), a provider of governance, ESG data, and analytics. This transaction values ISS at nearly $2.3 billion.
The existing management team, along with Genstar Capital, will maintain a 20% stake in the company. CEO Gary Retelny will continue in his role, allowing ISS to operate independently and ensuring the integrity of its data and research, as stated in a recent announcement.
ISS serves over 4,000 clients, including many of the world’s most prominent institutional investors who rely on its data and analytical insights for their ESG-focused investments—an area identified by Deutsche Börse as a significant "megatrend" in the financial industry.
Theodor Weimer, CEO of Deutsche Börse, emphasized that ISS’s expertise in ESG and its robust data capabilities align perfectly with Deutsche Börse’s business strategy across its value chain. He noted that the combination of ISS and Deutsche Börse positions them to become one of the leading global players in the ESG space.
The deal is anticipated to finalize in the first half of 2021, pending standard closing conditions and regulatory approvals.
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