Deutsche Börse Group has confirmed that it has entered exclusive discussions to acquire Allfunds Group PLC in a significant deal that could reshape the European fund distribution and infrastructure landscape. The company acknowledged recent market speculation and said it is pursuing a possible acquisition of Allfunds’ entire issued and to-be-issued share capital through a non-binding proposal.
According to Deutsche Börse Group, the Allfunds board of directors has unanimously agreed to enter into an exclusivity period under the current proposal. A binding offer has not yet been made. It remains contingent on several customary preconditions, such as satisfactory due diligence, completion of definitive transaction documentation, and final approval from the boards of both companies.
Deutsche Börse Group said it sees a compelling strategic, commercial, and financial rationale for combining its fund services division with Allfunds. The potential merger would represent a significant consolidation move in the European investment fund ecosystem and create a unified pan-European platform intended to reduce market fragmentation. The combined operation would focus on enabling more effective retail investment into productive capital, improving efficiencies, and accelerating innovation.
The proposed terms currently imply a total consideration of €8.80 per Allfunds share, comprising €4.30 in cash and €4.30 in newly issued Deutsche Börse Group shares based on the company’s undisturbed 10-day VWAP. The proposal also includes a permitted dividend of €0.20 per share for the 2025 financial year.
Under the contemplated structure, Allfunds shareholders could also receive pro-rated cash dividends of up to €0.20 per share for the 2026 financial year and €0.10 per share per quarter in the 2027 financial year. The combination would be executed through a scheme of arrangement under Part 26 of the UK Companies Act 2006.
Deutsche Börse Group said the potential transaction aligns with its long-term strategy and its broader aim to strengthen the European capital markets as envisioned by the Savings and Investments Union initiative. The company also noted that a successful combination would be subject to regulatory approvals, with no certainty on timing or whether the deal will ultimately proceed.
A further announcement will be issued when appropriate.
KEY QUOTES
“Deutsche Börse Group believes in the strong strategic, commercial and financial rationale of combining Allfunds with Deutsche Börse Group’s fund services business segment. This potential business combination would represent a further successful consolidation, establishing a truly pan-European ecosystem. It would reduce fragmentation in the European investment fund industry and create a harmonized business with global reach, playing a key role in further facilitating the investment of retail savings into productive capital allocations such as investment funds. The combination is expected to deliver substantial operational efficiencies and cost synergies across platforms and services, enable the rationalization of investment capacity, and drive further innovation for clients with even faster time-to-market. Overall, it is expected that clients and the EU equity markets would significantly benefit from the strengthened set-up of such a combined platform.”
“Deutsche Börse Group is a strong advocate of a prospering funds industry being essential to the EU’s status as a globally relevant financial center. The proposed transaction would be in line with Deutsche Börse’s strategy and further emphasizes its ongoing commitment and efforts to strengthen European capital markets and its global competitiveness as envisioned by the Savings and Investments Union (SIU).”
Deutsche Börse statement
