Deutsche Boerse offers $4.3 billion for Denmark’s SimCorp

By Emma-Victoria Farr and Danilo Masoni

BERLIN/FRANKFURT (Reuters) – Stock exchange operator Deutsche Boerse on Thursday announced a 3.9 billion euro ($4.31 billion) takeover offer for Danish investment management software company SimCorp SA, as it looks to diversify its business.


Shares in Deutsche Boerse dropped more than 6% after the German company announced the all-cash deal at 735 Danish crowns ($109.04) per share, which the target said its board would unanimously recommend.

SimCorp shares surged nearly 39% to 734.50 as of 0838 GMT to trade just below the offer price.

The Danish financial software provider, which has more than 2,200 employees, posted operating profit of 126 million euros on revenue of 561 million euros last year. 

SimCorp’s business complements Deutsche Boerse’s data analytics business, which could create a platform for investment management and boost recurring revenue from subscriptions, the German company said.

A Frankfurt-based trader, who was not authorised to speak publicly, said the deal looked expensive but seemed to be a good strategic step.

“The negative reaction seems overdone to me,” the trader said.

Deutsche Boerse said it had secured bridge loan financing with Morgan Stanley, which would be refinanced with existing cash and debt capital market instruments.

The takeover will go ahead if more than 50% of SimCorp shareholders accept the offer.

The aim is to close the deal in the third quarter this year after regulatory approvals, including merger controls in the EU and U.S. and sign off from the Danish financial supervisory authority, Deutsche Boerse said.

Following the takeover, the stock exchange operator plans to merge its data and analytics subsidiary Qontigo with ESG data provider ISS, which it acquired in 2021.

Financial investor General Atlantic, which has a minority stake in Qontigo, will become sole minority shareholder in the combined business. In the medium term, ISS/Qontigo will look towards an initial public offering (IPO), Deutsche Boerse added.

GRAPHIC – Deutsche Boerse Simcorp

($1 = 0.9046 euros)

($1 = 6.7405 Danish crowns)

(Reporting by Emma-Victoria Farr and Danilo Masoni, Writing by Rachel More; Editing by David Goodman and Jamie Freed)