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Deutsche Börse buys majority stake in ISS for ESG play

Deutsche Börse buys majority stake in ISS for ESG play

Deutsche Börse has agreed to buy an 80% stake in governance, ESG data and analytics provider Institutional Shareholder Services (ISS) in a deal that values the firm at nearly $2.3 billion.

Current management and Genstar Capital will retain a stake of 20% in the business, with CEO Gary Retelny staying in post as ISS remains autonomous to "ensure independence of its data and research," says a statement.

ISS’ more than 4000 clients include many of the world’s leading institutional investors, who rely on the firm's data and research for their ESG-based investing - an area that Deutsche Börse calls one of the key "megatrends" in the industry.

Theodor Weimer, CEO, Deutsche Börse, says ISS' "ESG expertise and data capabilities perfectly link to Deutsche Börse’s business model along our entire value chain. Together, ISS and Deutsche Börse have complementary ingredients to become one of the globally leading ESG players of the future."

The transaction is expected to close in the first half of 2021 subject to customary closing conditions and regulatory approvals.

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