July 27, 2015 / 12:51 PM / 4 years ago

UPDATE 2-Deutsche Boerse buys three companies, raises guidance

* Now expects net profit to grow 10-15 pct annually

* Move follows acquisition of 360T, Stoxx and Indexium

* Second-quarter earnings shy of expectations

* Savings programme to lead to one-time costs of 60 mln euros (Adds new mid-term goals, quarterly results)

By Arno Schuetze

FRANKFURT, July 27 (Reuters) - Deutsche Boerse raised its earnings outlook after acquiring three companies over the weekend in a sign that the stock market operator is going back to takeover deals in its fight for global market share.

Deutsche Boerse said on Monday it would now seek to raise net earnings by 10 to 15 percent annually and revenue by 5 to 10 percent annually in the medium term.

On Sunday, it struck a deal to buy foreign exchange trading platform 360T for 725 million euros ($805 million), followed by the acquisition of two index groups for 650 million Swiss francs ($679 million) on Monday.

The deals show that new Chief Executive Carsten Kengeter has reversed the no-merger strategy of his predecessor Reto Francioni, who abstained from M&A after a planned tie-up with the New York Stock Exchange failed in 2012.

In the race for 360T, Deutsche Boerse beat runners-ups CME and Nasdaq, which had been expected to be better placed to win the auction, according to a person familiar with the deal.

“But if Deutsche Boerse hadn’t sealed the 360T deal it would have become very difficult for it to keep up with the top players in foreign exchange,” the person said.

The deal, which values 360T at roughly 22 times its expected core earnings, is the biggest acquisition by Deutsche Boerse since the Frankfurt-based stock exchange bought U.S. derivatives exchange ISE in 2007 for $2.8 billion.

The move by Deutsche Boerse to buy the remaining stakes in index joint ventures Stoxx and Indexium from Switzerland’s Six Group had been expected since an announcement in June.

Exchange operators have been keen to buy equity index businesses to boost revenue as the trend for large investors to track indices through Exchange Traded Funds (ETFs) rather than making choices on individual stocks has grown.

Deutsche Boerse will initially finance the deal with cash and short-term bonds and at a later stage it intends to issue bonds, including hybrids, it said on Monday.

Following the three acquisitions, Deutsche Boerse is now targeting 2.8-3.2 billion euros in net revenue and EBIT of 1.55-1.75 billion euros for 2018.

Previously, it had had a sales target of 2.3-2.7 billion euros.

Deutsche Boerse reiterated on Monday that for 2015, it is expecting sales of 2.2-2.4 billion euros, EBIT of 975 million to 1.175 billion euros and a net income of 675-825 million.

In the second quarter it posted a net profit of 175 million euros, missing expectations of analysts, who had seen the group hike net earnings by 20 percent to 191 million euros.

With the help of restructuring measures, which will lead to one-time costs of 60 million euros, Deutsche Boerse expects to create about 50 million euros in additional investment capacity from 2016 onwards, the group said.

$1 = 0.9567 Swiss francs $1 = 0.9005 euros editing by David Evans

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