Today Euronext, the leading pan-European exchange in the Eurozone with nearly 1,300 listed issuers, announces the acquisition of 80% of the capital of InsiderLog, a Stockholm-based leading player in the field of insider list management, for a cash consideration of €5.8 million, plus an earn-out payment depending on future financial performance.
InsiderLog automates the management of insider lists in a way that both saves time and ensures compliance with the requirements of the Market Abuse Regulation (MAR). MAR requires every listed company, their advisors and listed bond issuers to create and manage insider lists for all market sensitive projects. InsiderLog supports compliance officers with this responsibility, from the creation of insider lists, to the management of related information collection workflows, including the reporting to regulators in a standardised format. In addition to insider lists as such, InsiderLog also manages the administration of Persons Discharging Managerial Responsibilities (PDMR) and the closed period before each financial report.
The market potential for such a solution is significant as all companies with listed instruments in the European Union are subject to the new MAR insider list requirements, with non-compliance penalties of up to €2.5 million or 2% of their turnover. InsiderLog is a web-based, GDPR-compliant platform based on an annual subscription model and has already attracted more than 170 clients including renowned blue chip companies, banks and law firms since its recent creation in November 2016. InsiderLog was initially designed and developed by the legal team of Serendipity Professionals, part of the leading Swedish investment firm Serendipity Group which has five listed companies in its portfolio.
The acquisition of InsiderLog fits within Euronext’s Agility for Growth strategic plan, announced in May 2016, aiming to create more value for issuers, notably through the development of a complete Corporate Services franchise. This transaction further strengthens Euronext’s value proposition for listed companies by addressing a strong need from issuers. This solution will be integrated into the Euronext Corporate Services offering, alongside existing services such as Euronext’s webcasting platform, investor relationship management tool and innovative board portal solution. The InsiderLog solutions will be distributed across the five core Euronext markets, in Belgium, France, the Netherlands, Portugal and the UK, as well as in Ireland as soon as the acquisition of the Irish Stock Exchange is completed, and in financial centres where Euronext has established European Tech Hub teams such as Madrid, Milan, Zurich, Frankfurt and Munich. 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.
This acquisition will enable Euronext to capture a sizeable market opportunity in insider list management created by the Market Abuse Regulation, which came into force in July 2016 and is in line with Euronext’s strict M&A discipline.
Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said: “The acquisition of InsiderLog will address a growing need from issuers in Europe, by helping them manage their insider lists via an efficient and time-saving solution. This acquisition will complement the existing Euronext Corporate Services offering and will deliver further growth and profitability to our shareholders, as announced in our Agility for Growth strategic plan.“
John Engholm, Managing Director of InsiderLog, said: “We are very pleased to join Euronext. We want to facilitate the life of corporate issuers, and 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.”