Deutsche Börse launches investment intelligence firm

Source: Deutsche Börse

Deutsche Börse Group is expanding its portfolio with a newly created growth company, Qontigo – a financial intelligence innovator and leader in the modernisation of investment management, from risk to return.

This step follows the successful closing of the Axioma acquisition, announced earlier this year, and receipt of required regulatory approvals.

Qontigo combines Deutsche Börse’s world-class indices (STOXX and DAX) and Axioma’s best-of-breed portfolio-construction and risk analytics tools to enable clients to achieve a competitive advantage in a rapidly changing marketplace. Qontigo is uniquely equipped to address trends that are reshaping investment management. These include the growth of passive investing and smart beta, the modernisation of the investment management technology infrastructure to achieve efficiency and scale, and the transition towards customisation of investment solutions.

Stephan Leithner, responsible Member of the Executive Board of Deutsche Börse AG, said: “With Qontigo we are creating a buy-side intelligence leader that provides indexing products and analytics to meet the growing demand for increasingly sophisticated solutions and a platform for future growth in line with our Roadmap 2020 ambitions.” Deutsche Börse’s Roadmap 2020 growth strategy builds on three pillars: organic growth, programmatic M&A and new technologies.

Sebastian Ceria, who will lead Qontigo as CEO, said: “We will build upon the strengths of Axioma, STOXX and DAX to create a client-centric growth company – one driven by a strong entrepreneurial spirit, a relentless commitment to innovation, and the deployment of modern technology. With the support of Deutsche Börse Group and General Atlantic, we look forward to providing next-generation investment intelligence to our clients.”

Gabriel Caillaux, Managing Director and Head of EMEA at General Atlantic, stated: “We have strong conviction that Qontigo can deliver a fully integrated joint buy-side client proposition that builds upon the indexing and portfolio/risk analytics legacies of the STOXX and Axioma businesses. We look forward to working with management and Deutsche Börse to deliver strong growth and value creation to Qontigo’s clients as well as our investors.”

The root of the brand name Qontigo means “with you” and conveys the spirit of continuous innovation and partnership with clients that forms the foundation of the new company. As part of the Qontigo launch, updated branding is also being introduced across STOXX, DAX and Axioma to build on the strong existing brands and create visual alignment with the new unified corporate identity.

As part of the transaction, Deutsche Börse has entered into a strategic partnership with General Atlantic, a leading global growth equity investor. General Atlantic invested approximately USD 720 million in Qontigo, which was used to partly finance the acquisition of Axioma. Deutsche Börse’s index business (STOXX and DAX) was valued at EUR 2.6 billion and Axioma at USD 850 million in this transaction.

Qontigo is headquartered in Eschborn, with key locations in New York, Zug and London.  

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