Deutsche Boerse buys Institutional Shareholder Services in $1.8bn deal
Frankfurt stock exchange operator Deutsche Boerse has announced it will buy a majority stake in Institutional Shareholder Services (ISS) in a deal that values the proxy adviser at $2.3 billion.
London Stock Exchange rival Deutsche Boerse said it will take an 80 per cent stake in ISS for $1.8bn, with the remaining 20 per cent retained by current management and Genstar capital.
The deal, which is expected to be completed in the first half of next year, is part of the stock exchange’s strategy to capitalise on the growing importance of environmental, social and corporate governance (ESG) to investors.
In a statement tonight it said: “With this transaction, Deutsche Boerse strongly commits to one of the key megatrends in the industry that will fundamentally change the investment space over the coming years.
“ISS’ unique ESG and data expertise will allow Deutsche Börse to emerge as a leading global ESG data player.”
The current executive leadership of ISS, which provides ESG research to around 4,000 clients around the world, will invest in the transaction and will continue to lead the business after the transaction.
Deutsche Boerse chief executive Theodor Weimer said: “ISS is a very successful company with a high reputation worldwide as a global market leader in providing data, analytics and insights to investors and companies as well as governance services.
“It is one of the leading ESG providers. Its ESG expertise and data capabilities perfectly link to Deutsche Börse’s business model along our entire value chain.
“Together, ISS and Deutsche Boerse have complementary ingredients to become one of the globally leading ESG players of the future.”