Deutsche Börse has taken a major step towards expanding its presence in the fund distribution market and is in talks to acquire European fund technology giant Allfunds in a deal worth around $6 billion. The German exchange operator confirmed that a non-binding offer had already been submitted, sending ripples across the financial sector and sending Allfunds' share price sharply higher.
A strategic attempt to expand market reach
Under the proposal, Deutsche Börse wants to acquire Allfunds for 8.80 euros per share, which would give the company an implied equity value of 5.29 billion euros ($6.13 billion based on FactSet data). The mix payment offer includes €4.30 in cash and €4.30 in newly issued Deutsche Börse shares per Allfunds share.
This signals a strategic move to complement Deutsche Börse's existing assets with a platform that connects fund managers and distributors worldwide – a segment that is becoming increasingly important as digital access to investment products increases.
Incentives for shareholders promote dynamism
The contract structure goes beyond upfront pricing. Deutsche Börse has proposed additional dividends that could make the offer more attractive for Allfunds shareholders. Investors remain entitled to a permissible dividend of €0.20 per share for the current financial year, further cash payments of up to €0.20 next year and €0.10 in 2027.
These incentives appear to have resonated with the market. Following the announcement, Amsterdam-listed shares of Allfunds rose 21% in afternoon trading.
Despite the market enthusiasm, uncertainty remains
Although interest is high, the transaction is not guaranteed. Deutsche Börse emphasized that discussions are still ongoing and there is no certainty that the deal will go through. If appropriate, a formal update will be issued indicating that due diligence and negotiations are still at an early stage.
If the acquisition goes through, it would be one of the most significant European financial infrastructure deals in recent years and could reshape the distribution of investment products across the continent by combining the scale of a global exchange with Allfunds' extensive fund network.
As the industry watches closely, the coming weeks will determine whether this ambitious step becomes a milestone or remains an exploratory dialogue. In any case, the proposal underlines the increasing race among financial institutions to strengthen their digital investment ecosystems.