Deutsche Börse annual investor day outlined expectations to focus on organic growth, targeted acquisitions, and investments in new technologies in its “Roadmap 2020” strategy. The exchange is targetting: structural net revenue targeted to grow by more than 5% per annum – annual net profit to increase by between 10 and 15% on average; structural costs to be reduced by around €100 million until 2020; technology investments of €270 million with several hundred new jobs in areas holding potential for the future.
One element of the “Roadmap 2020” is expanded investments in four key technologies: blockchain, big data analyses, cloud computing, as well as robotics and artificial intelligence. Deutsche Börse plans to leverage blockchain technology to explore new lines of business, yielding corresponding profits. Investments in cloud-computing technology, as well as in robotics and artificial intelligence will predominantly serve to further enhance efficiency in the existing businesses. Big data investments will be made in order to boost profits and enhance efficiency. The company will continue to pursue – as well as expand – ongoing initiatives in these areas. In total, Deutsche Börse aims to invest €270 million in key technologies.
In line with the Roadmap 2020, Deutsche Börse announced the acquisition of GTX’s ECN business from GAIN Capital Holdings for $100 million. With this transaction Deutsche Börse Group’s foreign exchange unit 360T expands its participation in the global FX market. GTX’s ECN business gross revenues were around $23 million in 2017 and are expected to grow with double-digit growth rates. The acquisition is expected to be cash accretive in year 1 after closing and is expected to meet Deutsche Börse’s return on investment target of more than 10% at the latest in year 3 post-closing.