Deutsche Börse has presented a €3.9 billion offer to acquire Danish financial software firm SimCorp.
The proposed bid constitutes a 38.9% premium over SimCorp’s closing share price and a 45.3% premium relative to its three-month volume-weighted average price. This transaction, endorsed by SimCorp’s board, aligns with Deutsche Börse’s strategy to expand its data and analytics division. Once finalized, the integration of DB subsidiary Qontigo/ISS with SimCorp will form a newly established Investment Management Solutions segment, with the potential for an initial public offering for the combined ISS/Qontigo business in the medium term.
The collaboration within this unit is anticipated to yield considerable upselling and cross-selling opportunities, enhance the environmental, social, and governance (ESG) offerings, and streamline certain corporate functions. Expected synergies at a run-rate Ebitda level are estimated to reach around €90 million annually within three years, alongside one-off costs of approximately €100 million.
SimCorp, boasting a workforce of over 2,200 employees, reported an operating profit of €126 million on revenues of €561 million in the previous year. Deutsche Börse aims to maintain SimCorp’s existing global operations, including its headquarters and registered office in Denmark.
Theodor Weimer, CEO of Deutsche Börse AG, remarked: “In recent years, we have significantly enhanced our data and analytics capabilities, strategically focusing on growth in the investment management sector. SimCorp A/S aligns perfectly with our strategic and cultural goals.”
He added, “In conjunction with the acquisition of SimCorp A/S, we have also decided to merge ISS and Qontigo. These initiatives will drive long-term growth, create substantial synergies, and markedly increase our recurring revenues. We are excited to welcome SimCorp, a trusted partner for many years, into the Deutsche Börse Group as we embark on this promising journey together.”