Euronext, the pan-European stock exchange, has announced its biggest acquisition yet with a €5.5bn bid for Allfunds Bank – a Spanish asset management company. This move will make Euronext one of the largest players in the European asset and wealth management industry, as well as the leading provider of savings and investments products to retail
Euronext, the pan-European stock exchange, has announced its biggest acquisition yet with a €5.5bn bid for Allfunds Bank – a Spanish asset management company. This move will make Euronext one of the largest players in the European asset and wealth management industry, as well as the leading provider of savings and investments products to retail customers. The acquisition is part of Euronext’s ambitious strategy to become a full-service financial market and exchange, offering a wide array of services to both investors and companies looking to raise capital. This move will also mark Euronext’s entry into the booming sector of asset and wealth management, enabling them to tap into an increasingly globalised industry. Read on to find out more about this landmark deal and what it means for the future of Euronext.
Euronext to Acquire Allfunds for €5.5bn
Euronext, the leading pan-European exchange, has announced its intention to acquire Allfunds, the world’s largest provider of fund distribution services, for €5.5bn.
This is Euronext’s biggest acquisition to date and will solidify its position as a one-stop shop for asset managers and investors across Europe. Allfunds has over 2,000 customers in more than 50 countries and provides access to over 60,000 investment funds.
The acquisition is expected to be completed in the first half of 2020, subject to regulatory approvals.
What the Acquisition Means for Euronext
The acquisition of Allfunds by Euronext is a big deal. Allfunds is one of the largest independent fund platforms in Europe with over €600bn of assets under administration. The acquisition will help Euronext to expand its product and service offering in the asset management industry and further solidify its position as a leading financial markets operator.
The deal has been widely welcomed by the market and is expected to be completed in the first half of 2021. Upon completion, the combined company will have pro forma 2020 revenue of €1.6bn and EBITDA of €300m.
The acquisition will be financed through a combination of cash and new debt, and is expected to be accretive to Euronext’s earnings per share from 2022 onwards.
What the Acquisition Means for Allfunds
The proposed acquisition of Allfunds by Euronext is the latest in a series of consolidation moves in the European asset management industry. The deal, which is still subject to regulatory approval, would create a pan-European asset management platform with over €1 trillion of assets under administration.
The acquisition would give Euronext a significant presence in the growing cross-border asset management market. Allfunds has a strong client base of banks and other financial institutions, which would complement Euronext’s existing customer base. The combined company would have a leading position in key European markets such as France, Italy, Spain, Belgium, and the Netherlands.
The acquisition is also an important step for Euronext in its goal to become a one-stop shop for all financial services. In addition to providing trading and settlement services for securities, Euronext offers clearing and custody services through its subsidiary Clearstream. The acquisition of Allfunds would add asset management to Euronext’s product offering, furthering its goal of becoming a one-stop shop for all financial services.
The deal is expected to close in the first half of 2020, subject to regulatory approval.
The Impact of the Acquisition on the European Fund Industry
Euronext, the leading pan-European exchange operator, has made its biggest acquisition yet with a €.bn bid for Allfunds, the world’s largest provider of fund distribution services.
The deal will have a significant impact on the European fund industry as it will create a new powerhouse in the asset management space. Euronext will become the go-to platform for fund managers looking to distribute their products across Europe.
The acquisition is also likely to lead to consolidation in the European fund industry as smaller players will struggle to compete with the combined might of Euronext and Allfunds.
As Euronext makes its biggest acquisition yet with the €5.5bn bid for Allfunds, it is clear that this will be a major cause of growth and development in the financial sector. It marks an exciting time not just for those involved in the deal but also for anyone interested in investing or who has money to put into stocks or shares. With such large acquisitions, there is huge potential for new opportunities and changes within the industry which can only benefit individuals looking to diversify their investments and achieve greater returns on their portfolios.