Deutsche Börse Group has confirmed it is in exclusive talks with Allfunds Group PLC on a possible acquisition, subject to the usual due diligence and other measures that would be associated with such a takeover.
Any deal would need to be approved by the full boards of both companies.
The Germany-headquartered Deutsche Börse Group stated “strong strategic, commercial and financial rationale of combining Allfunds with Deutsche Börse Group’s fund services business segment.”
“This potential business combination would represent a further successful consolidation, establishing a truly pan-European ecosystem. It would reduce fragmentation in the European investment fund industry and create a harmonised business with global reach, playing a key role in further facilitating the investment of retail savings into productive capital allocations such as investment funds.”
“The combination is expected to deliver substantial operational efficiencies and cost synergies across platforms and services, enable the rationalisation of investment capacity, and drive further innovation for clients with even faster time-to-market. Overall, it is expected that clients and the EU equity markets would significantly benefit from the strengthened set-up of such a combined platform.”
It went on to state that a combined entity would also be supporting of the objectives of the EU Savings and Investments Union (SIU).
Shareholders in Allfunds are being proposed €8.80 per share, comprising €4.30 in cash and the same in new Deutsche Börse Group shares “based on Deutsche Börse Group’s undisturbed 10-day VWAP, plus a permitted dividend in respect of financial year 2025 of €0.20 per Allfunds share.”
“Allfunds shareholders would also be entitled to receive cash dividends, pro-rated as at the date of Closing, of up to €0.20 per Allfunds share for the financial year 2026 and €0.10 per Allfunds share per quarter during the financial year 2027.”
The proposed combination of the two companies “would be effected through a scheme of arrangement under Part 26 of the UK Companies Act 2006.”
Per the announcement, Deutsche Börse Group stated that there was no certainty a deal would proceed, and that if it did it would be subject to regulatory approvals.
For its part, Allfunds confirmed the discussions had commenced, and stressed the point that there was “no certainty” that any deal would progress.
