Deutsche Börse confirms exclusive talks to acquire Allfunds; shares up

Investing.com -- Shares in Allfunds Group (AS:ALLFG) traded higher on Friday after Deutsche Börse Group (ETR:DB1Gn) confirmed it is in exclusive discussions regarding a possible acquisition of the European fund-services company on Thursday. 

Deutsche Börse said the talks concern a potential purchase of all issued and to be issued share capital of Allfunds Group Plc.

The German exchange operator said Allfunds’ board of directors “has unanimously agreed to Allfunds entering into exclusivity on the basis of the Non-binding proposal put forward by Deutsche Börse Group.” The company said the talks follow recent market speculation.

Deutsche Börse said the announcement of any binding offer is subject to a number of customary pre-conditions.

 Those include, it said, “the satisfactory completion of customary due diligence in respect of Allfunds, the finalization of definitive transaction documentation and final approval of the Deutsche Börse and Allfunds Boards.” 

The group said there is no certainty a transaction will proceed or about the terms or timing, and any deal would be subject to regulatory approvals.

The non-binding proposal under discussion implies total consideration of €8.80 per Allfunds share, Deutsche Börse said. The company said the proposal includes €4.30 in cash and €4.30 in new Deutsche Börse Group shares based on the group’s undisturbed 10-day VWAP. 

It also includes a permitted dividend of €0.20 per Allfunds share for the financial year 2025. Under the terms described, the company said Allfunds shareholders would additionally be entitled to receive cash dividends, pro-rated as at the closing date, of up to €0.20 per share for 2026 and €0.10 per share per quarter for the financial year 2027.

The group said, “Deutsche Börse Group believes in the strong strategic, commercial and financial rationale of combining Allfunds with Deutsche Börse Group’s fund services business segment.” 

According to the statement, the company said the potential combination “would represent a further successful consolidation, establishing a truly pan-European ecosystem” and “would reduce fragmentation in the European investment fund industry and create a harmonized business with global reach.”

The company said the transaction is expected to deliver efficiencies and cost synergies, though it did not provide figures or timelines. The group said the combination “is expected to deliver substantial operational efficiencies and cost synergies across platforms and services, enable the rationalization of investment capacity, and drive further innovation for clients with even faster time-to-market.”

The statement said the proposal aligns with Deutsche Börse’s efforts to reinforce the region’s financial position.