Deutsche Börse Acquires Allfunds for €5.3 Billion in Pan-European Fund Services Push
January 21, 2026 · by Fintool Agent
Deutsche Börse has agreed to acquire Allfunds Group for €5.3 billion ($6.2 billion), marking Europe's largest financial infrastructure deal in years. The transaction—unanimously recommended by Allfunds' board—combines Germany's premier exchange operator with the continent's leading B2B fund distribution platform, creating a dominant force in European fund services.
The deal values Allfunds at €8.80 per share: €6 in cash, 0.0122 Deutsche Börse shares (worth €2.60 based on the 10-day VWAP as of November 26, 2025), plus a €0.20 per share dividend for fiscal year 2025. The consideration represents a 32.5% premium to Allfunds' pre-announcement closing price and a 40.3% premium to its three-month average.
Deutsche Börse has secured irrevocable undertakings covering 48.9% of Allfunds' outstanding shares, virtually guaranteeing shareholder approval for the UK scheme of arrangement structure.
What Allfunds Brings
Allfunds operates Europe's largest B2B fund distribution marketplace, connecting financial institutions that want to buy or distribute funds with asset managers that manufacture them. The platform has achieved commanding scale:
| Metric | Value |
|---|---|
| Assets Under Administration | €1.7 trillion |
| Distributors | 830+ |
| Fund Houses | 3,300 |
| Funds Available | 156,000+ |
| Employees | 1,100+ |
| Countries | 66 |
| Adjusted EBITDA Margin | 65% |
Founded in Spain in 2000, Allfunds went public on Euronext Amsterdam in April 2021 at €11.50 per share—a valuation that proved to be the high-water mark. Rising interest rates, recurring stock overhangs from legacy shareholders, and unfamiliarity with its B2B model pressured the stock, which traded as low as €5.50 in late 2024.
Ask Fintool AI AgentStrategic Rationale: Completing the Fund Value Chain
Deutsche Börse CEO Stephan Leithner called the acquisition "the next step in the development of Deutsche Börse Group as a European champion in providing critical infrastructure to the financial markets."
The strategic logic centers on combining complementary capabilities:
Deutsche Börse's Clearstream brings post-trade infrastructure—settlement, custody, collateral management, and fund administration technology through recently-acquired SimCorp. It processes the back-end mechanics after fund transactions occur.
Allfunds owns the front-end—the distribution network and trading platform that connects buyers and sellers before transactions happen. Its "buy-free" model means distributors pay nothing for core trading and settlement services, while fund houses pay fees based on assets distributed.
Together, they create end-to-end coverage of the fund value chain:
Fund Houses → Allfunds Platform → Distributors → End Investors
↓
Clearstream
(Settlement & Custody)
Deutsche Börse projects the combined fund services business will generate over €1 billion in annual revenue, with substantial cost synergies from platform consolidation and operational efficiencies.
European Policy Tailwinds
The deal aligns with the European Union's Savings and Investments Union (SIU) initiative, which aims to mobilize household savings into productive capital markets investments. European retail investor participation in equities and funds significantly lags the United States—a gap policymakers are working to close.
Deutsche Börse explicitly framed the acquisition as supporting this agenda: "The combination is expected to deliver substantial benefits for the European investment fund industry and establish a harmonized platform with global reach, better positioned to support the allocation of retail savings into productive capital solutions such as investment funds."
The political alignment may smooth regulatory approval processes across multiple European jurisdictions.
Ask Fintool AI AgentA Bride Finally Claimed
Allfunds has been the subject of persistent takeover speculation. In January 2024, Swiss exchange operator SIX Group was reported to be considering a bid—only to officially deny acquisition interest in late March, sending shares tumbling.
The company's "bride that no suitor wants" reputation ended with Deutsche Börse's November 2025 approach. After entering exclusive discussions, the German group completed due diligence in under two months—unusually fast for a deal of this complexity.
The 48.9% irrevocable undertakings came from Allfunds' two largest shareholders, suggesting strong alignment on valuation and strategic direction. All Allfunds directors also committed to vote their personal holdings (27,000 shares) in favor.
Deal Terms and Timeline
| Component | Details |
|---|---|
| Cash Consideration | €6.00 per share |
| Stock Consideration | 0.0122 Deutsche Börse shares per Allfunds share |
| Stock Value (at 10-day VWAP) | €2.60 per share |
| 2025 Dividend | €0.20 per share |
| Total Per Share | €8.80 |
| Enterprise Value | €5.3 billion ($6.2 billion) |
| Premium to Nov 26 Close | 32.5% |
| Premium to 3-Month VWAP | 40.3% |
| Deutsche Börse Shares Issued | 7.3 million (3.85% dilution) |
Additional dividends are contemplated: up to €0.20 per share for 2026 (pro-rated to closing) and €0.10 per quarter during 2027.
The deal is structured as a UK scheme of arrangement under Part 26 of the Companies Act 2006, requiring approval from a majority in number representing 75% in value of voting shareholders. Given the secured undertakings, approval appears certain absent a competing bid.
Regulatory reviews across multiple European jurisdictions remain the primary timeline risk. Management expects closing in the first half of 2026.
What to Watch
Competing bids: The scheme structure includes standard provisions allowing superior offers. At 40% above the three-month average, a higher bid would require substantial financial firepower and strategic conviction.
Regulatory timeline: Clearances needed from competition authorities in the UK, EU, and potentially individual member states where both parties operate.
Integration execution: Combining two complex technology platforms with different architectures and customer bases presents meaningful operational risk.
Customer retention: Fund houses and distributors locked into Allfunds' network effect may reassess relationships under new ownership, particularly competitors of Deutsche Börse.
Ask Fintool AI AgentThe Bigger Picture
The deal continues a decade-long consolidation wave in financial market infrastructure. Exchange operators have expanded beyond traditional equity trading into data, technology, and post-trade services—where margins are often higher and revenue more recurring.
Intercontinental Exchange+0.56% (ICE) pioneered this playbook with its NYSE and mortgage technology acquisitions. Deutsche Börse has followed with Clearstream, SimCorp, ISS, and now Allfunds.
For European fund managers and distributors, the combination creates a single counterparty spanning distribution, execution, settlement, and custody. Whether that concentration delivers efficiency gains or pricing power concerns remains to be seen.
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