Deutsche Börse AG is taking another significant step towards the public takeover of SimCorp A/S, one of the leading global providers of investment management solutions. The German marketplace organizer has announced the publication of the Offer Document, which provides the full terms and conditions of the offer, following the approval from the Danish Financial Supervisory Authority (Danish FSA).
This document puts forth the terms and conditions under which Deutsche Börse AG proposes an all-cash, voluntary, recommended public takeover of SimCorp A/S.
Deutsche Börse Wants to Acquire SimCorp
The proposed takeover involves the acquisition of all shares of SimCorp A/S (excluding treasury shares) at a price of DKK 735.0 per share. This move comes after Deutsche Börse announced a binding agreement with SimCorp on 27 April 2023, signifying a pivotal moment in the German exchange's strategic expansion plans.
Subject to customary conditions, the offer's completion hinges on Deutsche Börse obtaining all the necessary regulatory approvals. Additionally, it requires a minimum acceptance level of 50% plus one share of SimCorp's share capital and voting rights. According to the current timeline, the transaction is expected to conclude in Q3 2023.
"The Board of Directors of SimCorp has unanimously resolved that it intends to recommend the shareholders of SimCorp to accept the Offer," Deutsche Börse commented in a written statement. "The Board of Directors of SimCorp will publish a statement in respect of the Offer, which will include the Board of Directors' considered statement on the Offer."
Furthermore, the Executive Management Board and the Board of Directors of SimCorp have agreed to sell their shares to Deutsche Börse at the offer price.
Deutsche Börse Sees 24% Profit Boost in 2022
The German stock exchange operator has released its preliminary results for the fourth quarter and full year of 2022, showcasing substantial growth of 24% year-over-year in both annual revenues and income.
According to the results published in February, the company's net revenue for the year was €4,338 million, which is a marked increase from the €3,509 million reported in 2021. The EBITDA witnessed a leap, rising from €2,043 million to €2,525 million, while the net income ended at €1,563 million, which is up from the €1,264 million recorded in the preceding period. All these key financial indicators reported an annual growth rate of 24% year-over-year.
"By exceeding its guidance for 2022 and achieving its mid-term targets outlined in the growth strategy Compass 2023 a year ahead of schedule, Deutsche Börse Group has significantly surpassed its own expectations," the company stated in the announcement.
In line with the data released by Deutsche Börse in the initial days of January, the company's trading venues, namely Xetra, Börse Frankfurt and Tradegate Exchange, successfully achieved a combined order book turnover of €1.8 trillion within the first seven months of 2022 alone. This performance starkly contrasts the €1.9 trillion amassed across the platforms in the corresponding period a year earlier.
In a recent development, Crypto Finance AG, a crypto startup under Deutsche Börse, has unveiled its collaboration with the financial services provider Apex Group. This partnership seeks to provide institutional-level digital asset products.
