The German stock exchange has moved to bolster its standing as a provider of ESG data and analytics after purchasing a majority stake in Institutional Shareholding Services (ISS).
Deutsche Börse has partnered with US private equity firm Genstar Capital in the acquisition which values ISS at $1.92 billion (€1.62 billion).
The exchange will take an 80% stake in the ESG analytics provider. The remaining 20% will be held by Genstar and current management.
Deutsche Börse described the move as its “logical next step” in the ESG field – “one of the key megatrends in the industry”.
It follows the 2019 creation of analytics business Qontigo, formed through the combination of Deutsche Börse's STOXX and DAX index businesses, alongside risk analytics firm Axioma which was acquired last April for $850 million.
Current ISS chief executive Gary Retelny will remain in charge as will the rest of the current leadership. Deutsche Börse has also stated that ISS will retain its editorial independence.
“[ISS’s] ESG expertise and data capabilities perfectly link to Deutsche Börse’s business model along our entire value chain,” said Theodor Weimer, Deutsche Börse chief executive .
The transaction is expected to finalise in the first quarter of next year.
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