- M&A
- April 28, 2023
- 2 minutes read
Germany’s Deutsche Boerse Bids $4.3B For Danish Software Group SimCorp
Deutsche Boerse AG (ETR: DB1), a German stock exchange operator, has made a formal offer to acquire SimCorp (CPH: SIM),…
Deutsche Boerse AG (ETR: DB1), a German stock exchange operator, has made a formal offer to acquire SimCorp (CPH: SIM), a Danish financial software maker. Deutsche Boerse offered 29 billion Danish Krone ($4.3bn) in cash, a 39% premium to SimCorp’s market value before the announcement.
At $4.3bn, SimCorp will be Deutsche Boerse’s biggest acquisition since inception. SimCorp’s board has accepted the offer and recommends the same action to shareholders. Nonetheless, it’s subject to a vote from at least 50% of SimCorp’s shareholders.
- Acquiring SimCorp is a fitting way for Deutsche Boerse to expand its business. The Danish company sells investment management software to banks, asset managers, sovereign wealth funds, pension funds, and the like. It’ll complement Deutsche Boerse’s Data & Analytics division, where the company sees high growth opportunities.
SimCorp reported a net income of 99 million euros ($109mn) on 561 million euros ($617mn) in revenue in 2022. Deutsche Boerse reported a net profit of 1.5 billion euros ($1.65bn) on 4.3 billion euros ($4.7bn) in revenue in the same year.
The acquisition will be financed by a loan from investment bank Morgan Stanley. Barring shareholder or regulatory pushback, Deutsche Boerse expects to close the deal in this year’s third quarter.
