By Elias Schisgall
Deutsche Borse Group signed an agreement to acquire wealth management company Allfunds for about 5.3 billion euros, or roughly $6.19 billion.
The price represents a 32.5% premium to Allfunds' closing price of 6.64 euros a share on Nov. 26 and a 40.3% premium for Allfunds' weighted average price for the three-month period ended Nov. 26, Deutsche Borse Group said Wednesday.
It said Allfunds shareholders would receive 6 euros in cash, plus 2.60 euros worth of Deutsche Borse Group stock and a dividend of 20 European cents for fiscal 2025 for each Allfunds share they hold. Allfunds shareholders are also entitled to certain further dividends in subsequent financial periods, Deutsche Borse Group said.
Deutsche Borse Group said it had fully committed financing in place for the cash portion of the transaction.
Allfunds' board of directors unanimously support the acquisition, Deutsche Borse Group said. The deal will be effected through a court-sanctioned scheme of arrangement under United Kingdom law, requiring a 75% majority vote from Allfunds shareholders.
It said LHC3 Limited and BNP Paribas, who respectively hold 36.1% and 12.8% of Allfunds stock, had agreed to vote in favor of the deal.
"The acquisition represents a highly compelling opportunity to create a truly global, world-class player in fund services that will combine the companies' complementary global footprints with the distribution strength of Allfunds and the custody and settlement capabilities of Deutsche Börse Group's Clearstream Fund Services segment," Deutsche Borse Group said.
The company said the deal would be accretive to cash earnings per share within the first full year following closing, which is expected in the first half of 2027.
It projected annual pre-tax cost synergies of 60 million euros, which represents 15% of the combined cost base of Allfunds and Deutsche's Clearstream Fund Service segment. The deal is also expected to lead to capital expenses savings of 30 million euros annually.
About 50% of those savings are expected to be realized by the end of 2028, the company said.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
January 21, 2026 15:45 ET (20:45 GMT)
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