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Euronext Acquires Irish Stock Exchange to Expand Growth Opportunities/Increase Efficiencies.


1 December 2017 - Netherlands-based pan-European stock exchange Euronext (PAR: ENX) (Amsterdam: ENX) (Brussels: ENX) has acquired 100% of the shares and voting rights of Ireland's stock exchange operator The Irish Stock Exchange plc (ISE) for EUR 137m (USD 163m), the company said.

Closing is expected in 1Q18, subject to regulatory approvals.

Ireland becomes the sixth core European country in the exchange. Euronext said ISE will expand by joining Euronext's federal model and leveraging Euronext technology, support and services. ISE brings to Euronext leading global positions in debt, funds and ETF listings markets. As part of Euronext, ISE's growth initiatives will be reinforced with Euronext's full support.

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

This transaction will also develop the Irish capital markets ecosystem within a European context and as part of Euronext's core mission to power the real economy.

As of 30 September 2017, Euronext had cash and cash equivalents of EUR 140.6m (USD 167m), and EUR 164.7m (USD 196m) of outstanding long-term debt and strong liquidity through an undrawn revolving credit facility of EUR250m (USD 297.5m).

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

Euronext has nearly 1,300 listed issuers worth close to EUR 3.6 trillion in market capitalisation as of end September 2017, a blue chip franchise consisting of 24 issuers in the Morningstar Eurozone 50 Index and a diverse domestic and international client base.

ISE acts as a centre for companies to raise international funds and investors to trade their shares. ISE has 30,000+ debt securities and listings from 85+ countries and a diversified customer base of 3,600+ issuers. ISE generated EUR 29.4m (USD 35m) of revenues and an EBITDA of EUR 9.6m (USD 11.4m) in 2016.

Rothschild is acting as sole financial advisor to Euronext and A and L Goodbody as legal advisor. Moelis and company is acting as sole advisor to ISE and Arthur Cox as its legal advisor.

Country: Ireland

Sector: Banking/Financial Services

Target: The Irish Stock Exchange

Buyer: Euronext


Deal size in USD: 163m

Type: Corporate Acquisition

Financing: Cash

Status: Agreed

Buyer advisor: Rothschild , A and L Goodbody ,


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Publication:M & A Navigator
Geographic Code:4EUIR
Date:Dec 1, 2017
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