Euronext acquires research and commissions service provider

Euronext acquires 78% of Commcise for an initial cash consideration of £27 million.

Euronext has purchased a majority stake in Commcise, a Software as a Service (SaaS) provider of research evaluation and commission management solutions for financial services firms.

The exchange platform will acquire 78% of the company for an initial cash consideration of £27 million.

Commcise offers a cloud-based research commission management, evaluation and accounting solution targeting asset managers, brokers and independent research providers.

“The acquisition of Commcise demonstrates our commitment to increasing our value proposition for all our customers,” said Stéphane Boujnah, chief executive officer and chairman of the managing board of Euronext.

“Capitalising on its track record of delivering new value-added services to issuers, Euronext is addressing the needs of the buy-side and sell-side communities with ways of simplifying their business and efficiently managing research procurement and commissioning across the globe. The acquisition is consistent with our disciplined approach to M&A and our Agility for Growth strategic plan, with the goal of serving Euronext’s client base through a broader range of services.”

Commcise’s revenue model is based on recurring software licence fees. At the end of September 2018, annual contract value (ACV) stood at £3.7 million, growing six-fold from 2016.

The firm benefited from the introduction of MiFID II and will compliment Euronext’s own offering.

The SaaS firm services more than 500 customers across Europe, the US and Asia.

Euronext added that the acquisition is in line with its strategic growth plans announced in May 2016.