Euronext has acquired around 90 per cent of FastMatch for a USD153 million initial cash consideration.
FastMatch’s management will remain invested with a circa 10 per cent interest, with minority rights. Closing is subject to regulatory and anti-trust approvals, and is expected to occur in Q3 2017.
This bolt-on acquisition is part of Euronext’s strategy to actively leverage its balance sheet flexibility to capture value accretive opportunities and to accelerate growth and diversification of the revenue base in line with its ambitions. As such, the investment in FastMatch will not consume any resource dedicated to the deployment of the Agility for Growth initiatives (EUR100 to EUR150 million), which remains a key priority for Euronext.
The transaction establishes Euronext’s presence in the FX segment (the largest market globally), diversifies Euronext’s top line, accelerates its growth profile and allows the group to extend its value proposition to an additional asset class.
“The acquisition of FastMatch breaks new ground for Euronext, through expansion into the FX market which is the world’s largest traded asset class. This will broaden the spectrum of products we provide to capital market users, whilst meaningfully diversifying our revenue and creating long-term value and growth for customers and shareholders. The combination of FastMatch’s in-depth FX expertise, leading technology platform, diverse customer base and entrepreneurial spirit with Euronext’s scale, strength and credibility, will position Euronext as a trustworthy infrastructure provider servicing a market where participants are increasingly looking for transparency, reduced capital costs, cutting-edge trading and long-term clearing solutions. The transaction is consistent with our disciplined approach to M&A and our Agility for Growth strategic plan announced on 13 May 2016, including our goal of attracting the best talent and entrepreneurs,” says Stéphane Boujnah (pictured), chairman and CEO of the managing board of Euronext NV.
Dmitri Galinov, founder and CEO of FastMatch, says: “We are very excited to become part of Euronext, an exchange group on the frontline of innovation and agility in the industry. Together, we will accelerate our vision of bringing transparency, best-in-class technology and execution to FX markets globally. Our superior technology will serve as catalyst to Euronext’s strategic ambitions in growing into the FICC in Europe.”
