Euroclear has agreed to acquire MFEX Group, a global digital fund distribution platform, majority owned by Nordic Capital.
The transaction is expected to close in H2 2021, subject to customary closing conditions and regulatory approvals.
Established in 1999, the MFEX Group is headquartered in Stockholm with over 300 employees internationally. MFEX offers a complete solution for fund companies and distributors and has assets under administration of $320 billion.
With this transaction, MFEX and Euroclear’s complementary businesses are expected to produce significant value through revenue synergies, expanding the client service offering by creating a new funds market utility and a leading global provider of fund services.
The combination of MFEX’s distribution platform with Euroclear’s FundSettle post-trade operations expertise is set to create a “compelling offering” for fund distributors and fund management companies globally.
The parties have agreed not to disclose financial details.
Euroclear’s CEO Lieve Mostrey comments: “We expect MFEX’s broad fund distribution network, along with its talented people, to be very complementary to Euroclear as we continue to enhance our exceptional service, extend our customer proposition and grow our business.”
Jean Devambez, CEO of MFEX Group, says: “Over the past years, we have together with Nordic Capital invested in our platform and continued to transform the fund distribution proposition. Euroclear is a great strategic fit for the next stage of our journey. By adding our respective strengths, we will be able to build an even better and stronger solution for fund distribution.”
Elsewhere, Euronext has completed the transfer of issuer central securities depository services for 50 Irish corporate issuers and listed companies from CREST, operated by Euroclear UK & Ireland, to Euroclear Bank.
