| Euronext acquisition of ISE to deepen the Irish Stock Exchange's offering in a post-Brexit era, helping to position it as a global hub for debt, funds and ETF listings |
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| A sale of the 224 year-old institution for €137 million, excluding an additional €21.8 m in regulatory capital (17.1 times 2016 earnings) follows a strategic search during the course of this year by the ISE for a partner to strengthen its offerings potential after Brexit. Euronext is a pan-European exchange, spanning Belgium, France, the Netherlands, Portugal and the UK and is the largest European exchange aside from the London Stock Exchange, which is about twice its size by capitalisation. |
ISE CEO Deirdre Somers will be Euronext’s Head of Debt, Funds and ETF (Exchange Traded Funds) listing and member of the Euronext Managing Board. The ISE will have a strong group-wide position within Euronext’s structure as a global centre of excellence for all group-wide activities in the listing of Debt, Funds and ETF securities. | | [L-R] Stephane Boujnah, CEO Euronext and Deirdre Somers, CEO, ISE: ' Euronext is the perfect partner to enable us to achieve our growth ambitions.' |
”This is a landmark day in the 224-year history of ISE and a great day for our customers and our people. This transaction recognises the significant value and leading market position that has been built by the ISE, said ISE CEO Deirdre Somers. 'More importantly, we believe that Euronext is the perfect partner to enable us to achieve our growth ambitions. Euronext is hugely complementary to the ISE, bringing valuable expertise, financial strength, global relationships and technological capability as well as a global brand. These will enable our business to build further on its track record of international achievement and capitalise on new market and product opportunities emerging in Europe.'
'The Irish Stock Exchange joining Euronext represents a major milestone in the expansion of Euronext’s federal model since its IPO. ISE brings to Euronext leading global positions in debt, funds and ETF listings markets. As part of Euronext, ISE’s growth initiatives will be reinforced with Euronext’s full support,' said Stephane Boujnah, Euronext CEO and Chairman of the Managing Board. 'We are delighted to welcome Deirdre Somers and her team to Euronext. In addition to strengthening revenue profile and cost synergies, ISE is ideally positioned to benefit from market opportunities in a post-Brexit environment. Within this environment, our unique federal model clearly demonstrates its added value through a single cross-country liquidity pool, a single state-of-the-art proprietary technology, a single rule book and a complete and diversified set of services, while maintaining strong local input within our balanced federal governance,' he added.
The Irish Stock Exchange during this year surpassed Luxembourg as the leading exchange for debt securities listings, underlining its success on a global basis as a listing exchange.
In the context of Brexit, and the stalled Capital Markets Union project (which was championed by Lord Jonathan Hilll, former EU Commissioner who resigned on the day after the Brexit vote), a linkup between the ISE and Euronext would usher in a new EU - and CMU focus for the exchange in future years.
The transaction is due to close in the first quarter of 2018 subject to regulatory approvals. |
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