Deutsche B?rse AG: Agreement on acquisition of majority stake in Institutional Shareholder Services Inc.
Deutsche B?rse AG ("Deutsche B?rse") has entered into binding agreements on the acquisition of Institutional Shareholder Services Inc. ("ISS"), which is a leading governance, ESG data and analytics provider. Deutsche B?rse will acquire a majority stake of approximately 80% in ISS. Genstar Capital LLC and the current management of ISS will continue to hold approximately 20% in ISS. The transaction is based on an ISS valuation of USD 2,275 million (EUR 1,925 million) cash-and-debt free for 100%. Deutsche B?rse plans to finance the acquisition by around EUR 1 billion of debt and the remainder with cash. In 2020, ISS is expected to generate net revenue of more than USD 280 million (pro-forma IFRS) and an adjusted EBITDA margin of approximately 35% pre-transaction effects, which has further operating leverage potential. Net revenue of ISS is expected to grow organically at a rate of more than 5% on average per annum until 2023.? ISS' ESG and data expertise will allow Deutsche B?rse to emerge as a leading global ESG data player. Both businesses are highly complementary and offer the potential for revenue synergies along Deutsche B?rse Group's entire value chain. Revenue synergies are expected to result in EUR 15 million additional EBITDA by 2023. After the closing, ISS will continue to operate with the same editorial independence in its data and research organization that is in place today. The current executive leadership team with CEO Gary Retelny will co-invest in the transaction and will lead the business of ISS also after the closing. The transaction is expected to close in the first half of 2021 with closing being subject to receiving required regulatory approvals and other customary closing conditions. The "EBITDA", which is the standard key performance measure for earnings amongst Deutsche B?rse's peers, is defined on page 270 of Deutsche B?rse's annual report 2019. The "EBITDA margin" as a profitability indicator is measuring the Earnings before interest, tax, depreciation and amortisation as a percentage of net revenue. Contact: Ingrid Haas Group Communications Deutsche B?rse AG Telefon: +49 69 211 1 32 17 Patrick Kalbhenn Group Communications Deutsche B?rse AG Telefon: +49 69 211 1 47 30 E-Mail: firstname.lastname@example.org
17-Nov-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Language: English Company: Deutsche B?rse AG - 60485 Frankfurt / Main
Germany Phone: +49 (0)69 211 - 0 E-mail: email@example.com Internet: www.deutsche-boerse.com ISIN: DE0005810055, DE000A1RE1W1, DE000A2LQJ75, DE000A161W62, DE000A1684V3 WKN: 581005, A1RE1W, A2LQJ7, A161W6, A1684V Indices: DAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1148720 ? End of Announcement DGAP News Service