Deutsche Boerse AG is nearing an agreement to acquire Allfunds Group Plc in a transaction valued at approximately €5.3 billion, according to sources familiar with the matter. The deal, expected to be structured as a combination of cash and shares, could be announced as early as this week, subject to final negotiations. (Bloomberg)
The potential acquisition follows Deutsche Boerse’s non-binding offer made in November, which valued Allfunds at around €8.80 per share and led to exclusive talks with the Allfunds board. Market reaction has been positive: Allfunds shares recorded their strongest intraday gain in months following reports that discussions are approaching completion, lifting the company’s market capitalization to roughly €4.8 billion.
Allfunds operates a leading business-to-business fund distribution platform, providing fund managers and distributors with trading, execution, data analytics, and compliance tools. As of the end of September, the platform oversaw approximately €1.7 trillion in assets under administration. Its technology enables clients to access and trade a wide range of investment funds through a centralized system, while offering fund providers detailed insights into asset flows and performance.
For Deutsche Boerse, which has a market capitalization of around €40 billion, the transaction would represent a significant expansion of its post-trade and data services footprint. The German exchange operator has long shown interest in Allfunds, having explored a possible acquisition several years ago before the company proceeded with its initial public offering. Competitive interest has also been evident, with Euronext previously submitting an indicative bid in 2023 that was ultimately withdrawn.
Allfunds’ shareholder base includes private equity firm Hellman & Friedman and BNP Paribas, which together hold nearly half of the company’s shares. While neither party has commented publicly on the current negotiations, the ownership structure is likely to play a key role in final deal terms.
Despite the advanced stage of discussions, the transaction is not without risk. Analysts have warned that European competition authorities may subject the deal to an in-depth antitrust review, as it would combine the two largest providers in the business-to-business fund platform market. Such scrutiny could affect timing, remedies, or even the feasibility of the acquisition.
If completed, the deal would underscore ongoing consolidation in financial market infrastructure, driven by the strategic value of data, technology, and scalable platforms. It would also test how regulators balance efficiency gains against concerns over market concentration in increasingly specialized segments of the financial services ecosystem.