Deutsche Boerse has announced their biggest acquisition to date as they have bought foreign exchange trading platform 360T for 725 million euros.
The acquisition is first on the hit list for CEO Carsten Kengeter who intends to buy more companies after several M&A’s have not come to fruition over the past couple of years, as well as the planned tie-up with the New York Stock Exchange 2012, according to Reuters.
Reuters says that 360T have revolutionised FX trading over the past ten years and the multi-bank, multi-user platform should help Deutsche Boerse bring in the expected millions of revenue in cash earnings.
360T focus on the $5 trillion a day market in spot currency transactions, rather than complicated instruments like options and futures that exchange groups like Deutsche Boerse’s Eurex work on, as Reuters reports.
These exchange groups have been preparing for what will become an increasingly regulatory market as currency trading is becoming popular as investors, retail trading houses and banks take notice.
As the success of fintech start-ups grow, this deal is notable as 360T is now known as the most valuable German fintech company and will pave the way for further investment, according to Reuters.
A total of US$4.88 trillion of debt has been sold so far this year reports Dealogic, close to the level of 2007 when US$4.91 trillion of bonds were issued over the same period.
The German industrial gases group has ended talks with its US peer on a potential union to establish a market leader.
The US exchange said it will introduce incentives from next month to make lower-volume exchange traded funds easier to buy and sell.
A survey of 1,000 merger and acquisition dealmakers finds that seven in 10 expect Brexit uncertainty to limit the number of deals.