Group Co.
Euronext to Acquire Irish Stock Exchange
Traders Magazine Online News, December 1, 2017
Euronext announced the acquisition of 100% of The Irish Stock Exchange plc (“ISE”), for €137 million.
ISE is currently owned by five Irish financial institutions, J&E Davy, Goodbody Stockbrokers, Investec Capital & Investments, Cantor Fitzgerald and Campbell O’Connor that have all committed to sell their shares.
The transaction is subject to regulatory approvals and is expected to close in Q1 2018.
A strategic venue to join Euronext’s federal model
Headquartered in Dublin, ISE is Ireland’s incumbent stock exchange operator and a global leader in the listing of debt and funds securities. ISE is the first pool of liquidity for Irish equities (51 listed companies, c. €122bn total domestic equity market capitalisation[3]), the first debt listing venue globally (30,000+ securities and listings1 from 90 countries) and the first fund listing venue globally (5,242 Investment Funds Securities and 227 ETFs1).
ISE generated revenue of €29.4m, EBITDA of €9.6m and a net income of €8.0m in 2016. For the first 9 months of 2017, ISE generated €24.2m of revenue, up +13.3% compared to the same period in 2016, and an EBITDA of €8.5m, up +22.4% compared to the same period in 2016.
The combined group pro forma 9 months of 2017 revenue would amount to €416.9m and an EBITDA of €227.7m before synergies.
ISE to join Euronext’s federal model for further growth opportunities and increased efficiency
The transaction brings together two highly complementary businesses with significant growth opportunities and expands Euronext’s federal model to a new attractive European country. It creates a leading global player in debt and fund listings, combining the listing expertise of ISE with the traded markets expertise of Euronext.
Euronext will benefit from ISE’s leading global positions in debt and fund listings as well as its unique product and listing expertise. The acquisition will also enhance Euronext’s growth outlook thanks to ISE’s embedded core businesses’ growth, complemented by the additional strategic growth plans for ISE, which will be reinforced with the full support of Euronext.
Ideal positioning of ISE in a dynamic environment, to take advantage of post-Brexit opportunities
The acquisition of ISE by Euronext, combined with Ireland’s very competitive economic environment, will further strengthen Ireland’s position as a strong European anchor to take advantage of Brexit opportunities. This transaction will also develop the Irish capital markets ecosystem within a European context and as part of Euronext’s core mission to power the real economy.
ISE is at the centre of Ireland’s highly competitive financial ecosystem. The country provides a recognized finance-friendly environment, with a highly educated workforce, and a business-oriented mind-set, as well as an attractive economy within the Eurozone, with forecast GDP growth of c.3.8%[4] 2017e-18e. Ireland is in a strong position to seize opportunities arising from Brexit since it is both close to the UK business culture and strongly rooted inside the Eurozone.
Dublin will have a strong group-wide position within Euronext’s highly inclusive federal governance structure, notably as the global centre of excellence for all Euronext’s group-wide activities in the listing of debt, funds and ETF securities.
ISE will then benefit from a strong European anchor to support and develop the Irish listed companies’ ecosystem within a European context and as part of Euronext’s core mission to power the real economy.
Integrated federal governance at the core of Euronext’s federal model
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