Euronext announced that it has acquired substantially all the business of Acupay Group, a provider of financial reporting, corporate actions, cross-border tax relief, and securities processing services. The transaction will be fully financed with existing cash, further financial details were not disclosed.
Acupay’s services provides relief from double taxation to cross-border investors. Its proprietary solution, which links brokers and banks to securities issuers, enables custodian banks to electronically prepare tax certificates and allows investors to effectively manage the impact of cross-border withholding tax. Acupay and BondCom’s ability to identify bondholders allows them to assist issuers with liability management exercises.
The acquisition of Acupay further expands Euronext Securities’ services offering to investors and issuers, leveraging Acupay’s strong presence in Italy and opportunities to scale the fintech’s services through Euronext Securities’ network across Europe. The acquisition will also strengthen Euronext’s non-volume related revenue streams.
Stéphane Boujnah, CEO and chair of the Managing Board of Euronext, said in a statement: “Euronext Securities is today the third largest central securities depository operator in Europe and this acquisition will enable us to offer new value-added services to our clients. We are glad to welcome the Acupay team, whose expertise in financial reporting, cross-border tax relief and securities processing will contribute to further reinforcing Euronext Securities’ ability to serve issuers, custodians, brokers and investors across borders.”
Stef Lambersy, president of Acupay, said in a statement: “The acquisition by Euronext of Acupay demonstrates the high relevance and quality of our services towards customers and validates our ambitions as a service provider for the future, backed by the pan-European market infrastructure.”