Euronext to acquire Danish CSD operator VP Securities

Maria Nikolova

The transaction is set to double Euronext’s central securities depository business in size.

Euronext NV (EPA:ENX) today announces it has entered into definitive agreements to acquire approximately 70% of the shares of Danish Central Securities Depository VP Securities from its existing owners, the Danish Central Bank and four major Danish financial institutions, Danske Bank, Nykredit, Nordea and Jyske Bank.

The price offered for 100% of the shares is DKK1.12 billion (c. €150m). Euronext will open an offer to all remaining shareholders, at the same terms and conditions. The transaction will be funded with existing resources.

Established in 1980 and headquartered in Copenhagen, VP Securities is fully integrated into the European post-trade framework. The company was the first Nordic CSD to be granted a CSDR license and to join the European Central Bank’s Target 2 Securities (T2S) settlement system. VP Securities provides national issuers with core CSD services as well as value-added services to the ecosystem such as investor relations tools and sub-custody services. In 2019, the company generated DKK426m of revenue (~€57.1m) and generated an EBITDA of DKK125m (~€16.8m).

The completion of the deal is expected by early Q3 2020 once regulatory approvals have been received.

The acquisition of VP Securities is an important step forward in Euronext’s strategy of strengthening its post-trade activities and expanding its presence in the Nordic region. VP Securities is set to become a key component of Euronext’s post-trade strategy, alongside Euronext VPS in Norway and Interbolsa in Portugal, enhancing Euronext’s expertise in custody and settlement activities as well as the delivery of post-trade value-added services.

Following the acquisition of Oslo Børs VPS, completed in June 2019, and Nord Pool in January 2020, Euronext has developed a strong Nordic skillset and has built increasing proximity with the client community in the Nordic region to the full benefit of the local ecosystems.

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