Euronext to acquire corporate news group
30 January 2006 | 5513 views | 0
Pan-European exchange Euronext is in negotiations to acquire CompanynewsGroup, a Paris-based distributor of corporate news releases.
Euronext, which has been linked to M&A deals with Deutsche Bourse and the London Stock Exchange, says the acquisition of the 25-person group will enable it to broaden its range of services to listed companies. The exchange says forthcoming European transparency Directives and requirements for new financial information should work to the benefit of CompanynewsGroup.
Euronext says the immediate aim will be to extend the services offered by CompanynewsGroup beyond its current client base in France, Italy and Spain, to take in new markets in the Netherlands and Portugal, and to further develop business in Belgium.
The deal is expected to be consummated by the end of the first quarter. Financial details have not been disclosed.
According to a Reuters report, Euronext is pondering whether a share buyback or other payout may be a more feasible way of spending its cash in the absence of other attractive deal opportunities.