Today, Euronext announces the acquisition of 100% of The Irish Stock Exchange plc (“ISE”), for €137 million.
• Euronext announces the acquisition of 100 % of the shares and voting rights of ISE, Ireland’s incumbent stock exchange operator and a leading global debt and fund listing venue
• Major milestone in the expansion of Euronext's federal model, in line with its long term strategy, with the addition of Ireland as the sixth core European country:
– Integration in Euronext of ISE, a highly complementary, growth-oriented leading global debt and fund listing venue
– Positioning ISE as centre of excellence for the Group in the listing of Debt, Funds and ETFs
– Significant opportunities to arise through ISE joining Euronext’s federal model and leveraging Euronext’s technology, support and services
– Integrated governance with ISE CEO to join Euronext’s Managing Board with group-wide responsibility for Debt, Funds & ETF listings, and ISE Chairman to join Euronext’s Supervisory Board2
– Enhancement of Euronext’s post-Brexit strategic positioning as an open and international venue
– Closing expected in Q1 2018, subject to regulatory approvals
• Transaction to deliver significant value creation:
– Strong core growth for ISE complemented by additional growth opportunities for the combined group and €6m of expected pre-tax run-rate cost synergies
– Strengthening of Euronext’s revenue profile with the addition of leading global franchises in debt, funds and ETF listings
– Expected return on capital employed above cost of capital within year three, in line with Euronext disciplined M&A approach, and EPS accretive from year one
Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext said: “The Irish Stock Exchange joining Euronext represents a major milestone in the expansion of Euronext’s federal model since its IPO. ISE brings to Euronext leading global positions in debt, funds and ETF listings markets. As part of Euronext, ISE’s growth initiatives will be reinforced with Euronext’s full support. We are delighted to welcome Deirdre Somers and her team to Euronext. In addition to strengthening revenue profile and cost synergies, ISE is ideally positioned to benefit from market opportunities in a post-Brexit environment. Within this environment, our unique federal model clearly demonstrates its added value through a single cross-country liquidity pool, a single state-of-the-art proprietary technology, a single rule book and a complete and diversified set of services, while maintaining strong local input within our balanced federal governance. This transaction demonstrates the strength of the Euronext “united in diversity” federal model.”
Deirdre Somers, Chief Executive Officer of ISE commented: ”This is a landmark day in the 224-year history of ISE and a great day for our customers and our people. This transaction recognises the significant value and leading market position that has been built by the ISE. More importantly, we believe that Euronext is the perfect partner to enable us to achieve our growth ambitions. Euronext is hugely complementary to the ISE, bringing valuable expertise, financial strength, global relationships and technological capability as well as a global brand. These will enable our business to build further on its track record of international achievement and capitalise on new market and product opportunities emerging in Europe.”
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