The teams of the three companies at the time of signing the agreement. From left to right: Pierre Schoonbroodt (CFO of LuxSE), Julie Becker (CEO of LuxSE), Jeffrey Nadal (managing director and CCO of Fundsquare), Maxime Aerts (managing director and COO of Fundsquare), Hamish Purdey (CEO of FE Fundinfo) and Tim Goodhind (chief revenue officer of FE Fundinfo). (Photo: Luxembourg Stock Exchange)

The teams of the three companies at the time of signing the agreement. From left to right: Pierre Schoonbroodt (CFO of LuxSE), Julie Becker (CEO of LuxSE), Jeffrey Nadal (managing director and CCO of Fundsquare), Maxime Aerts (managing director and COO of Fundsquare), Hamish Purdey (CEO of FE Fundinfo) and Tim Goodhind (chief revenue officer of FE Fundinfo). (Photo: Luxembourg Stock Exchange)

The Luxembourg Stock Exchange (LuxSE) signed an agreement with FE Fundinfo to create a centre of excellence for regulatory reporting in Luxembourg. As a result of the agreement, FE Fundinfo acquired Fundsquare and the exchange took a stake in its capital.

Fundsquare was created in 2013 by the Luxembourg Stock Exchange to facilitate cross-border fund distribution through the collection and distribution of data and information. The company succeeded Finesti and CCLux (Centrale de communications Luxembourg), two subsidiaries of the exchange specialised in information management and reporting. Fundsquare had become a leading European provider of fund registration and regulatory services, based in Luxembourg, serving asset managers and service providers worldwide. It provides services that streamline, standardise and facilitate the cross-border distribution of investment funds.

Fundsquare, a wholly-owned subsidiary of LuxSE, is now being sold to FE fundinfo, a UK company that claims to be a global leader in investment fund data and technology. The company operates in the UK, Europe, Asia and Australia, has offices in 15 countries--including the Grand Duchy--and employs 900 people.

The sale of Fundsquare is in line with a strategic objective of the Luxembourg Stock Exchange, namely to create, by combining the complementary activities of Fundsquare and FE fundinfo, “a pan-European leader in fund data, reporting and infrastructure”. LuxSE will hold a percentage of the shares of this leader, which will only be disclosed when the FCA (Financial Conduct Authority) gives its approval to the transaction.

LuxSE will be an active shareholder

“Fundsquare will contribute to the development of FE fundinfo's existing activity in Luxembourg, which is currently developing the publiFund platform. This platform centralises data and documents, connects the entire ecosystem of a fund and allows its manager to manage it throughout its life cycle," the three companies said in a joint statement.

For FE fundinfo, which has made a number of acquisitions in recent years, the deal allows it to continue its growth and strengthen its market positions.

As part of the acquisition, FE fundinfo will create a centre of excellence for regulatory reporting, located in Luxembourg. The acquisition will also allow LuxSE and FE fundinfo to explore joint opportunities in ESG products and services by leveraging on LuxSE's experience and FE fundinfo's capabilities in this area.

“To continue to support Fundsquare's growth, and in particular its international development, we have decided to partner with a strong player, capable of providing the necessary resources, skills and network. We have found the ideal partner in FE fundinfo and we are convinced that this new ownership structure will give the Fundsquare team many opportunities for innovation, growth and scale in a rapidly changing environment. The Luxembourg Stock Exchange will remain active through its shareholding in the FE fundinfo group and we are delighted to accompany the company on its ambitious growth path, in Luxembourg and beyond," said , CEO of LuxSE.

This story was first published in French on . It has been translated and edited for Delano.