Deutsche Börse to acquire Allfunds in €5.3bn transaction

Core Viewpoint - Deutsche Börse Group has agreed to acquire Allfunds for €5.3 billion ($6.2 billion), offering shareholders €8.80 per share, which includes cash, newly issued shares, and potential dividends [1][2] Group 1: Transaction Details - The acquisition price represents a 32.5% premium over Allfunds' closing share price of €6.64 on November 26, 2025, and a 40.3% premium compared to the three-month average price of €6.27 per share [2] - The deal aims to merge Allfunds' fund distribution business with Deutsche Börse Group's Clearstream Fund Services operations [2] Group 2: Strategic Rationale - Both companies believe their expertise and client bases are complementary, allowing the merged entity to operate across a broader range of markets [3] - Allfunds CEO Annabel Spring emphasized the opportunity to create a world-class player with global reach and local relationships, enhancing support for distributors and fund partners [4] Group 3: Financial Projections - The transaction is expected to yield cost efficiencies and enhanced services in fund distribution, custody, settlement, data, and regulatory reporting [5] - Deutsche Börse Group projects "double-digit revenue growth potential" for the combined business in the mid- to long-term, with high "single-digit accretion" to cash earnings per share anticipated within the first full year post-closing [5] Group 4: Regulatory and Future Outlook - The completion of the transaction is subject to regulatory approvals and is expected in the first half of 2027 [6] - Deutsche Börse Group's CEO believes the combination will create a leading business in the sector, better serving client needs and supporting the development of the funds sector globally [6]