Deutsche Boerse buys Axioma for $850 million to create index analytics business

FILE PHOTO: A general view shows the German stock exchange (Deutsche Boerse) in Frankfurt, Germany, February 12, 2019. REUTERS/Kai Pfaffenbach

FRANKFURT (Reuters) - Deutsche Boerse is buying risk management software provider Axioma for $850 million, the stock exchange operator said on Tuesday, and plans to merge the unit with its existing index business to create a new analytics firm.

The acquisition will be cash neutral for Deutsche Boerse, which in the end will hold 78 percent of the new company, it said.

Private equity firm General Atlantic will hold around a 19 percent stake after its $715 million investment, and Axioma management 3 percent after investing $105 million.

Deutsche Boerse’s existing index business is valued at 2.6 billion euros ($2.93 billion). Axioma generated around $100 million in revenue in 2018 and has 240 employees. Axioma’s chief Sebastian Ceria will lead the new company.

Reporting by Tom Sims; Editing by Jan Harvey