Euronext acquires 100% stake in Irish Stock Exchange

Betty Liu

One of the largest owners of stock exchanges in the world, Euronext said it has acquired 100% stake in the Irish Stock Exchange.

Euronext said the acquisition has passed regulatory approvals.

The company said the Irish Stock Exchange plc today joins Euronext’s federal model and will operate under the business name Euronext Dublin2, with Ireland becoming one of the six core countries of Euronext

It also announced that Deirdre Somers is appointed Chief Executive Officer of Euronext Dublin and is to join the Managing Board of Euronext N.V.3 with Group level responsibilities to develop the Irish equity market and the centre of excellence in Listings of Debt & Funds and ETFs

Euronext said it expected return on capital employed above the cost of capital within year three, in line with Euronext’s disciplined M&A approach, and EPS accretive from year one

Euronext Dublin to be consolidated in Euronext financials starting 1 April 2018. As a reminder, Euronext Dublin generated4 €32.3 million revenue at an EBITDA margin of 31.9% in 2017

Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said: “As the only pan-European exchange operator, Euronext is uniquely positioned to welcome independent exchanges such as the Irish Stock Exchange, now Euronext Dublin, that want to join its federal model and benefit from its single cross-country liquidity pool, its state-of-the-art proprietary technology, and its single rule book. I am pleased to welcome Deirdre Somers as our new Managing Board member and the Head of Listings of Debt & Funds and ETFs, as well as the Euronext Dublin team to the Group. We have a strong growth plan for our new combined Group, to strengthen our leadership in debt and funds listings, and to be the entry point for ETF growth, while generating synergies through the integration of Euronext Dublin. This significant extension of the federal model will also reinforce Euronext’s post-Brexit strategic position and allow the Group to capture growth opportunities that arise, with a disciplined M&A approach.”

Deirdre Somers, Chief Executive Officer of Euronext Dublin and Head of Listings of Debt & Funds and ETFs, said: “This is a historic day for Irish capital markets. We are excited to be part of the Euronext federal model and the opportunities that it delivers to listed companies and Irish enterprises to access wider pools of international capital and corporate services. We are looking forward to building on our reputation as a global leader in debt products to develop the Euronext centre of excellence in listings of Debt & Funds and ETFs to meet market needs.”

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