Pan-European market infrastructure Euronext today announced that it has entered into an agreement to acquire 75% of the equity capital of Global Rate Set Systems (GRSS), a leading provider of services to benchmark managers.
This acquisition significantly strengthens the Euronext index franchise by adding very strong capabilities to data-contributed indices and data from a very reliable provider.
Founded in 2009 and based in New Zealand, GRSS is a critical service provider to benchmark managers producing three of Europe’s critical benchmark interest rates: EURIBOR® (global, the world’s largest benchmark), STIBOR® (Sweden) and NIBOR® (Norway). GRSS also owns and manages two regulated benchmark managers producing CIBOR® (Denmark) and PRIBOR (Czech Republic) and one benchmark manager producing the TAB, TADO and ICP (Chile) indices. GRSS provides a complete solution for developing, operating and monetizing benchmarks, indices and other forms of regulated or unregulated market data.
The acquisition of GRSS further diversifies and strengthens the Euronext franchise, positioning the Group as a leading player for the calculation and management of Interbank Offered Rate (IBOR) indices. In collaboration with GRSS management and its founder, Euronext aims to strengthen GRSS’s position to become the provider in the data and index contributing space, leveraging Euronext’s global leadership and recognition. This acquisition helps to increase Euronext’s fixed income and subscription-based income.
The transaction complies with Euronext’s capital allocation policy, with ROCE expected to exceed WACC between three and five years after closing. The transaction will be fully funded with existing cash and will not affect Euronext’s deleveraging path. Completion of the transaction is expected in the 2nd quarter of 2024 and is subject to customary regulatory approvals.
Stéphane Boujnah, CEO and Chairman of the Board of Directors of Euronext, said:
“The acquisition of Global Rate Set Systems is a new milestone in the expansion of Euronext’s data and index offering. Euronext is today one of the leading providers of key equity indices such as the CAC 40®, AEX® and OBX®. This transaction allows us to further expand Euronext’s offering of interest rate benchmarks and contribution data indices.
GRSS has a strong track record of continuous revenue growth and high quality service. We are delighted to welcome to Euronext the existing GRSS management team, who will help take GRSS to the next step and further expand Euronext’s index capabilities globally.”
Craig McIvor, Co-Founder and CEO of GRSS, said:
“Euronext’s acquisition of the majority stake in GRSS underlines the high quality of its services to clients. The GRSS management team is very excited about this acquisition and sees strong benefits and growth opportunities arising from participation in Euronext. Euronext already holds a leading position in the equity index space, which GRSS will complement by contributing GRSS’ expertise in interest rate benchmarks and contribution data indices.”