- Deutsche Börse is preparing a non-binding €5.29 billion bid for Allfunds at €8.80 per share, split evenly between cash and new shares, plus multi-year dividend rights.
- Allfunds’ board has entered exclusivity, but any deal depends on due diligence, definitive documentation, and board and regulatory approvals.
- The tie-up would expand Deutsche Börse’s fund services footprint and help consolidate Europe’s fragmented fund-distribution market, aligning with EU capital-markets goals.
- Key risks include the ~30–35% premium, integration and dilution concerns, and potential antitrust scrutiny.
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As of late November 2025, the German exchange operator Deutsche Börse has made a definitive move towards acquiring Allfunds Group PLC, a prominent fund-distribution and wealth technology platform managing €1.7 trillion in assets under administration. The proposed offer values Allfunds at €5.29 billion, representing €8.80 per share through a mix of cash and newly issued shares (50-50 split), alongside a dividend of €0.20/share for 2025, plus additional dividend rights for 2026 and 2027.
The boards of both companies have agreed to an exclusivity period, but the deal is non-binding and contingent on customary conditions: detailed due diligence, negotiation of transaction documents, and approvals from both boards and regulators. No binding offer has been made yet. Market reaction was enthusiastic: Allfunds shares rose ~21-22 % post-announcement.
Strategically, the acquisition would bolster Deutsche Börse’s fund services segment, complementing its existing platforms such as Clearstream, and is intended to reduce fragmentation in fund distribution across Europe. The deal aligns with EU policy priorities like the Savings and Investment Union to deepen capital markets.
However, there are material challenges. First, the 33 % premium over recent trading prices may raise questions on return on equity and capital discipline for Deutsche Börse. Integration risk looms: Allfunds’ platform capabilities, shareholders’ structure (significant holdings by private equity and financial institutions), and overlapping service lines require careful alignment. Regulatory and antitrust approvals will be key; the EU has increasingly scrutinized such deals for competition issues. Also, the timing of dividends and share issuance introduces valuation risk for both companies.
Open questions include: Will Deutsche Börse convert the non-binding proposal into a binding offer soon; how the dilutive effect of the share component will affect current Deutsche Börse shareholders; what synergies are achievable and on what timeline; what regulatory objections—particularly from EU competition authorities—may emerge; and what happens if alternative bidders re-emerge.
Supporting Notes
- Deutsche Börse’s non-binding proposal values Allfunds at €8.80 per share: €4.30 in cash + €4.30 in Deutsche Börse shares, plus €0.20 dividend for 2025.
- Additional dividend entitlements: up to €0.20 per share for financial year 2026, and €0.10 per share per quarter during 2027.
- Allfunds manages approximately €1.7 trillion in assets under administration and has over 2,000 institutional clients across 60 countries.
- Boards of Allfunds have unanimously agreed to enter into exclusivity with Deutsche Börse.
- The proposal is contingent upon satisfactory due diligence, finalized transaction documents, and board and regulatory approvals.
- Deal seen as aligning with EU policy objectives, especially the Savings and Investment Union, and with Deutsche Börse’s strategy to expand its fund services and financial technology footprint.
- The deal would allow Deutsche Börse to strengthen its fund services business and reduce fragmentation in Europe’s investment fund industry.
- Trade impact: Allfunds shares spiked ~21-22 % upon announcement; Deutsche Börse shares rose modestly (~1.8-2.4 %) reflecting market’s assessment of strategic value.
- Valuation premium over recent stock price: around 30-35 %.