Euronext Group (“Euronext”) and Nexi S.p.A. (“Nexi”) announce the signing of the sale and purchase of the technology businesses currently powering MTS, Euronext’s leading fixed-income trading platform, and Euronext Securities Milan (formerly called Monte Titoli) by Nexi to Euronext (the “Transaction”).
The purchase price will be paid in cash and amounts to c. €57m, subject to customary closing adjustments.
This Transaction is a new step in Euronext’s strategy to leverage its integrated value chain as it further enhances Euronext’s technology competencies and capabilities in trading and post trade. The Transaction will also strengthen the core operations of MTS and Euronext Securities Milan, which joined Euronext in April 2021. With this Transaction, Euronext internalises the core trading platform of MTS and its largest IT contract. It enables Euronext to become more agile and efficient by fully owning the technology powering MTS and Euronext Securities Milan.
Nexi, the leading PayTech in Europe, has been a partner of choice of MTS and Euronext Securities Milan for more than 30 years, powering their technology. Following the Transaction, Nexi will continue to provide technology services to Euronext under transitional arrangements and other services under related commercial agreements.
The Transaction, which will be realized through Euronext’s subsidiaries MTS and Euronext Securities Milan, is expected to close in the second half of 2022 and is subject to the customary approvals from the competent authorities and completion of the union consultation procedure.
Renato Martini, Digital Banking & Corporate Solutions Director at Nexi, said: “This sale, consistent with our strategy following the mergers with SIA and Nets, will allow us to focus further on our core business, digital payments, accelerating our growth in Europe and focusing on the realisation of synergies.”
Stéphane Boujnah, CEO and Chairman of the Managing Board at Euronext, said in a statement: “The planned acquisition of the technology assets driving MTS and Euronext Securities Milan is a key milestone in the Borsa Italiana Group integration process. At Euronext, owning the intellectual property of our critical operations is at the center of our strategy, to secure the robustness of our operations and to enable further development and product innovation. We look forward to welcoming the new teams to the Euronext Group.”
In a separate announcement, Euronext announced the completed migration of its data center and colocation services from Basildon, UK to the Aruba Global Cloud Data Centre in Bergamo, Italy, 14 months after the Borsa Italiana Group acquisition. The core data center handles 25% of European trading volumes. The Aruba Global Cloud Data Centre meets a rating 4 certification standard, provides the maximum level of safety and resilience, and is 100% powered by renewable energy, enabling Euronext to minimize its environmental impact.
The decision made in response to multiple factors, including the dynamic created by Brexit, and a strong rationale for relocating Euronext’s core European trading activities in the European Union. This move allows Euronext to fully control and directly manage its core IT infrastructure, as well as a key service to clients, colocation, which was previously outsourced. It also allows the generation of colocation revenues, embedded in the upgraded synergies.
Boujnah said in the statement: “It is the first major achievement within Euronext’s Growth for Impact 2024 strategic plan, paving the way for the migration of the Italian cash equities and derivatives markets to the Euronext Optiq trading technology as soon as 2023. This migration triggered the first business synergies related to the Borsa Italiana Group integration.