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Deutsche Boerse snaps up investor adviser ISS
[FRANKFURT AM MAIN] German stock market operator Deutsche Boerse said Tuesday it had bought around 80 per cent of US investor advice firm Institutional Shareholder Services (ISS), valued at US$2.3 billion.
The Frankfurt company will take over ISS in partnership with its current management and private equity firm Genstar capital, it said in a statement.
ISS offers institutional investors recommendations on how to vote at annual general meetings of the companies whose shares they hold.
It has a growing focus on companies' adherence to so-called environmental, social and corporate governance (ESG) criteria.
ISS' "ESG expertise and data capabilities perfectly link to Deutsche Boerse's business model" ranging from share trading to data analytics, said Theodor Weimer, chief executive of the stock market operator.
The American firm is forecast to bring in more than US$280 million in revenue this year, with average growth of five per cent annually expected until 2023.
Subject to regulators' approval, the deal should be completed by April next year.