Deutsche Börse Group is expanding its portfolio with a newly created growth company, Qontigo, which the German exchange refers to as a “financial intelligence innovator and leader in the modernization of investment management, from risk to return”. This step follows the successful closing of the $850 million Axioma acquisition earlier this year in April.
Qontigo is expected to address trends that are reshaping investment management, including the growth of passive investing and smart beta, the modernization of the investment management technology infrastructure to achieve efficiency and scale, and the transition towards customization of investment solutions.
Stephan Leithner, responsible Member of the Executive Board of Deutsche Börse AG, said in a statement: “With Qontigo we are creating a buy-side intelligence leader that provides indexing products and analytics to meet the growing demand for increasingly sophisticated solutions and a platform for future growth in line with our Roadmap 2020 ambitions.” Deutsche Börse’s Roadmap 2020 growth strategy builds on three pillars: organic growth, programmatic M&A and new technologies.
As part of the transaction, Deutsche Börse has entered into a strategic partnership with General Atlantic, a global growth equity investor. General Atlantic invested approximately $720 million in Qontigo, which was used to partly finance the acquisition of Axioma. Deutsche Börse’s index business (STOXX and DAX) was valued at €2.6 billion and Axioma at $850 million in this transaction. Qontigo is headquartered in Eschborn, Germany, with key locations in New York, Zug and London.