12 November 2009 News

 

Deutsche Börse and SIX Group buy up Stoxx

Deutsche Börse and SIX Group have signed definitive agreements under which they will become sole operators of the Swiss index provider Stoxx for a total consideration of €206m (£185m) in cash, comprised of €132m (£118m) for Dow Jones & Company's one-third stake and €74m (£66m) for certain intellectual property rights acquired by Stoxx. There will be the opportunity for Dow Jones & Company to earn up to a further €29.0m (£26m) depending on business performance, with any payment to occur by mid 2011. The total consideration will be borne pro-rata by Deutsche Börse and SIX Group.

Currently Deutsche Börse, SIX Group and Dow Jones & Company each hold 33.33 per cent of Stoxx. Following the closing of the transaction Deutsche Börse will control Stoxx through ownership of 50 per cent plus one share and SIX Group will hold 50 per cent minus one share in Stoxx. Deutsche Börse will fully consolidate Stoxx.

The transaction is subject to approval by the German antitrust authority as well as further customary closing conditions. Closing of the transaction is expected latest in the first quarter of 2010. Deutsche Börse plans to finance the transaction out of equity. The preferred source of equity financing is the retention of earnings.