The transaction will be completed by the end of March and the Frankfurt-based group will acquire 100% of the Luxembourg fund data specialist. Other terms of the agreement have not been disclosed.
The sale of Kneip to Deutsche Börse Group has been negotiated for many months by Hugues Delcourt, the current chairman of the board. The recruitment of Enrique Sacau as CEO in July 2020 was part of this process, Bob Kneip, the company's founder and vice-chair, told Delano's sister publication Paperjam. “It was part of a plan,” he says. “The way the market, the business and the technology were changing, it required significant investment to stay competitive. Investments that were beyond my means.” Bob Kneip set out to find the best possible partner to finance the development of his company. “I wanted the Kneip name to remain in the marketplace and to continue to shine nationally and internationally. Deutsche Börse Group was the big brother with the same vision and values as us. This was important to me and also to the employees.”
Following the acquisition, Deutsche Börse will connect Kneip with its established fund services platforms and look to simplify the process of data management.
“Through Kneip’s global reach and broad range of services, we will be able to further develop our product and service offerings and add value for funds clients at every stage of their business. This is also a unique opportunity to create a leading European fund data champion based in Luxembourg,” said Philippe Seyll, Head of Investment Fund Services at Deutsche Börse Group.
For Deutsche Börse Group, the objective is to strengthen one of the growth drivers considered strategic for the group and its Luxembourg subsidiary--Clearstream Banking Luxembourg. This investment fund services business represents about one third of Clearstream's revenues and is growing rapidly. “This is Clearstream's growth business,” Seyll told Paperjam last October.
The German company highlights that Kneip will continue to operate as a strong member of the Luxembourg fund services community.
“I am excited about the opportunities that Deutsche Börse Group and Kneip jointly bring to market. This partnership will benefit our clients, our teams and reinforce Luxembourg’s position as the leading cross-border fund centre in the world,” stated Bob Kneip in a press release.
The Luxembourg fund data manger was established in 1993 and currently manages investor disclosure and data publication for more than 10,000 funds in over 40 countries. It services over 30% of EU-based fund ISINs-- international securities identification numbers used to identify securities such as stocks.