Deutsche Börse Group confirms exclusive discussions regarding possible acquisition of Allfunds

Deutsche Börse Group notes recent market speculation and confirms that it is in exclusive discussions with Allfunds Group PLC regarding a possible acquisition of the entire issued and to be issued share capital of Allfunds (the “Non-binding proposal”). The board of directors of Allfunds has unanimously agreed to Allfunds entering into exclusivity on the basis of the Non-binding proposal put forward by Deutsche Börse Group. 

The announcement of any binding offer relating to a possible acquisition is subject to the satisfaction or waiver of a number of customary pre-conditions, including, amongst other things, the satisfactory completion of customary due diligence in respect of Allfunds, the finalization of definitive transaction documentation and final approval of the Deutsche Börse and Allfunds Boards.

Deutsche Börse Group believes in the 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 harmonized 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 rationalization 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.

Deutsche Börse Group is a strong advocate of a prospering funds industry being essential to the EU's status as a globally relevant financial center. The proposed transaction would be in line with Deutsche Börse’s strategy and further emphasizes its ongoing commitment and efforts to strengthen European capital markets and its global competitiveness as envisioned by the Savings and Investments Union (SIU).

The Non-binding proposal currently under discussion implies a total consideration of €8.80 per Allfunds share, comprising €4.30 in cash and €4.30 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. 

In addition, under the terms of that Non-binding proposal, it is expected that 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.

It is expected that the combination of Deutsche Börse Group and Allfunds would be effected through a scheme of arrangement under Part 26 of the UK Companies Act 2006.

There can be no certainty that any transaction will proceed, nor as to the terms or timing of any such transaction. Any transaction would be subject to regulatory approvals. A further announcement will be made as and when appropriate.

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Media contact:
Ingrid M.Haas
+49 69 211 13217
ingrid.haas@deutsche-boerse.com
 

About Deutsche Börse

As an international exchange organization and innovative market infrastructure provider, Deutsche Börse Group ensures that capital markets are fair, transparent, reliable, and stable. With its wide range of products, services, and technologies, the Group organizes safe and efficient markets for sustainable economies.

Its business areas cover the entire financial market transaction process chain. This includes the provision of indices, data, software, SaaS, and analytical solutions, as well as admission, trading, and clearing. Additionally, it comprises services for funds, the settlement and custody of financial instruments, and the management of collateral and liquidity. As a technology company, the Group develops state-of-the-art IT solutions and offers IT systems worldwide.

With nearly 16,000 employees, the Group is headquartered in the financial center of Frankfurt/Rhine-Main and has a strong global presence in locations such as Luxembourg, Prague, Cork, London, Copenhagen, New York, Chicago, Hong Kong, Singapore, Beijing, Tokyo, and Sydney.