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Euronext strengthens post-trade outlook with VP Securities swoop

Euronext strengthens post-trade outlook with VP Securities swoop

Euronext is to acquire 70% of the shares of Danish post-trade utility VP Securities from its existing owners, the Danish Central Bank and four major institutions, Danske Bank, Nykredit, Nordea and Jyske Bank

Euronext says it will extend its offer to all remaining VP Securities shareholders, valuing the firm at €150 million.

Established in 1980 and headquartered in Copenhagen, VP Securities provides national issuers with core CSD services as well as as investor relations tools and sub-custody services. In 2019, the company generated €57.1 million of revenue, delivering EBITDA of €16.8 million.

The depository will become a key component of Euronext’s post-trade strategy, alongside Euronext VPS in Norway and Interbolsa in Portugal, as the exchange operator seeks to diversify its income stream in a depressed market.

The acquisition also significantly expands Euronext's interest in the Nordic regions, having last year outmuscled Nasdaq in the battle for Oslo Bourse, and taken control of power market Nord Pool.

Stéphane Boujnah, Euronext CEO and chairman of the Managing Board of Euronext states: "The acquisition of VP Securities will position Euronext as a leading CSD operator in Europe, and as a leading player in the Nordic region. This reinforcement of our post-trade activities will allow Euronext to pursue the diversification of its topline. With about 200 talented employees, VP Securities will enable Euronext to further enhance its custody and settlement offering to deliver new and improved services for the benefit of the Danish real economy and European capital markets.”

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