Deutsche Börse, which runs stock exchanges and trading platforms in Europe, is in exclusive talks to acquire global wealth tech company Allfunds in a deal worth around €5.3bn.

Allfunds provides a digital ecosystem for fund distribution and wealth management. It connects fund houses and distributors, offering services like dealing and execution, data analytics, ESG solutions, compliance and blockchain innovation.

Deutsche Börse said that integrating Allfunds into the Deutsche Börse Group's fund services segment would create a truly pan-European ecosystem, reducing fragmentation in the European investment fund industry and creating a harmonised business with global reach.

If Deutsche Börse completes the acquisition, it will combine Allfunds with its own fund processing and distribution platform Vestima, with the move aiming to deliver significant operational efficiencies and cost synergies across its services.

The new platform could play a key role in further facilitating the investment of retail savings in investment funds, the company said.

Allfunds currently manages about €1.7 trillion in assets under administration and controls roughly 30 per cent of the European cross-border fund distribution market.

It serves more than 900 distributors and 3,000 fund houses, offering access to over 150,000 funds according to its website.

The currently non-binding proposal from Deutsche Börse offers €8.80 per Allfunds share, comprising €4.30 in cash and €4.30 in new shares in the Deutsche Börse, plus a permitted dividend for the 2025 financial year of €0.20 per Allfunds share.

“Overall, it is expected that clients and the EU equity markets would significantly benefit from the strengthened set-up of such a combined platform, Deutsche Börse said in a statement.

It added: “The proposed transaction would be in line with Deutsche Börse’s strategy and further emphasises its ongoing commitment and efforts to strengthen European capital markets and its global competitiveness as envisioned by the Savings and Investments Union (SIU).”

The company added that Allfunds' board of directors had unanimously approved the exclusive agreement proposed by the Deutsche Börse.

The offer is subject to the fulfilment or waiver of a number of customary conditions precedent, including satisfactory due diligence by Allfunds and final approval by the boards of directors of Deutsche Börse and Allfunds.

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