Irish Stock Exchange to be bought by Euronext for €137m
Euronext, the pan-European stock exchange group, has offered to buy the Irish Stock Exchange (ISE) for €137m ($162m). The offer came as Ireland makes attempts to deepen ties with Europe as Brexit uncertainty continues, and Europe tries to take on London as a financial centre. If it obtains regulatory approval the deal is expected to conclude early next year. Last year ISE made revenues of €29.4m and had a net income of €8m.

Euronext to Acquire Irish Stock Exchange

Euronext announced the acquisition of 100% of The Irish Stock Exchange plc (ISE), for 137 million.

ISE is currently owned by five Irish financial institutions, J&E Davy, Goodbody Stockbrokers, Investec Capital & Investments, Cantor Fitzgerald and Campbell OConnor that have all committed to sell their shares.

The transaction is subject to regulatory approvals and is expected to close in Q1 2018.

A strategic venue to join Euronexts federal model

Headquartered in Dublin, ISE is Irelands incumbent stock exchange operator and a global leader in the listing of debt and funds securities. ISE is the first pool of liquidity for Irish equities (51 listed companies, c. 122bn total domestic equity market capitalisation[3]), the first debt listing venue globally (30,000+ securities and listings1 from 90 countries) and the first fund listing venue globally (5,242 Investment Funds Securities and 227 ETFs1).

ISE generated revenue of 29.4m, EBITDA of 9.6m and a net income of 8.0m in 2016. For the first 9 months of 2017, ISE generated 24.2m of revenue, up +13.3% compared to the same period in 2016, and an EBITDA of 8.5m, up +22.4% compared to the same period in 2016.

The combined group pro forma 9 months of 2017 revenue would amount to 416.9m and an EBITDA of 227.7m before synergies.

ISE to join Euronexts federal model for further growth opportunities and increased efficiency

The transaction brings together two highly complementary businesses with significant growth opportunities and expands Euronexts federal model to a new attractive European country. It creates a leading global player in debt and fund listings, combining the listing expertise of ISE with the traded markets expertise of Euronext.

Euronext will benefit from ISEs leading global positions in debt and fund listings as well as its unique product and listing expertise. The acquisition will also enhance Euronexts growth outlook thanks to ISEs embedded core businesses growth, complemented by the additional strategic growth plans for ISE, which will be reinforced with the full support of Euronext.

Ideal positioning of ISE in a dynamic environment, to take advantage of post-Brexit opportunities

The acquisition of ISE by Euronext, combined with Irelands very competitive economic environment, will further strengthen Irelands position as a strong European anchor to take advantage of Brexit opportunities. This transaction will also develop the Irish capital markets ecosystem within a European context and as part of Euronexts core mission to power the real economy.

ISE is at the centre of Irelands highly competitive financial ecosystem. The country provides a recognized finance-friendly environment, with a highly educated workforce, and a business-oriented mind-set, as well as an attractive economy within the Eurozone, with forecast GDP growth of c.3.8%[4] 2017e-18e. Ireland is in a strong position to seize opportunities arising from Brexit since it is both close to the UK business culture and strongly rooted inside the Eurozone.

Dublin will have a strong group-wide position within Euronexts highly inclusive federal governance structure, notably as the global centre of excellence for all Euronexts group-wide activities in the listing of debt, funds and ETF securities.

ISE will then benefit from a strong European anchor to support and develop the Irish listed companies ecosystem within a European context and as part of Euronexts core mission to power the real economy.

Integrated federal governance at the core of Euronexts federal model

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