Spotting an opportunity for profit from new Market Abuse Regulations (MAR), Euronext has spent €5.8 million to acquire 80% of the assets of InsiderLog, a Stockholm-based supplier of insider list management.
MAR requires every listed company, their advisors and listed bond issuers to create and manage insider lists for all market sensitive projects. Failure to comply can result in fines of up to €2.5 million or 2% of turnover.
InsiderLog supports compliance officers with this responsibility, from the creation of insider lists, to the management and reporting of workflows to regulators, and the administration of Persons Discharging Managerial Responsibilities (PDMR).
The firm operates a subscription model, which has already attracted more than 170 clients since its creation in November 2016. InsiderLog was initially designed and developed by the legal team of Serendipity Professionals.
John Engholm, managing director of InsiderLog, says: “Together with Euronext we will develop a true pan-European business. Having become the leading player for insider lists management in the Nordics, Euronext’s support will enable us to broaden and accelerate our development across Europe.”
The founding team of InsiderLog will remain in place, continuing to grow the business while benefiting from Euronext’s reach and expertise with listed companies.
The acquisition, which includes a performance-related earn-out, fits within Euronext’s Agility for Growth strategic plan, announced in May 2016, with the objective of creating a complete corporate service franchise for issuers.