Deutsche Börse has set its sights on British fund distribution platform Allfunds Group. The Frankfurt-based exchange operator confirmed that it is engaged in exclusive talks „regarding the potential acquisition of all outstanding shares in Allfunds“. According to an ad-hoc statement, Allfunds’ board voted unanimously to enter into negotiations with Deutsche Börse.

Earlier, news agency Bloomberg had reported, citing people familiar with the matter, that several parties were interested in acquiring Allfunds. In addition to Deutsche Börse, private equity firm CVC Capital Partners is also said to have been among the bidders. Financial investor Hellman & Friedman has held a stake in Allfunds since 2017. In 2020, Allfunds entered into what it described as a „strategic partnership to build fund distribution services“ with BNP Paribas, which is also among Allfunds’ core shareholders. Since 2021, Allfunds has been listed on Euronext in Amsterdam. According to the company, the platform administers 1.7 trillion euros in assets.

With the planned transaction, Deutsche Börse aims to create a „pan-European ecosystem“ with global reach that would help reduce fragmentation in Europe’s investment fund industry, a spokesperson said. The goal is to strengthen European equity markets and, in line with the savings and investment union envisaged by the European Commission, make it more attractive for savers to invest idle cash held in bank accounts.

Whether a binding offer will ultimately be made depends on a number of conditions, including the outcome of a satisfactory due diligence process. The non-binding proposal currently under discussion values Allfunds at a total consideration of 8.80 euros per share, comprising 4.30 euros in cash and 4.30 euros in Deutsche Börse shares, plus a 0.20 euro dividend for 2025. That puts a value of around 5.3 billion euros on the deal.

Before the takeover interest became public, Allfunds stock had been trading at around 6.30 euros for much of November. Any transaction would still be subject to antitrust approval. Deutsche Börse is already a leading player in the sector through its subsidiary Clearstream Fund Services.