Euronext to acquire technology business powering MTS from Nexi

The acquisition will help strengthen MTS and Euronext Securities Milan’s core operations and enable further development and product innovation.

Euronext and Nexi have entered into an agreement for the acquisition of the former’s technology businesses which currently powers Euronext’s fixed-income trading platform MTS and Euronext Securities Milan.

Euronext will acquire the businesses for €57 million, subject to closing conditions. The deal is expected to close in the second half of this year.

The exchange said the transaction is a new step in its strategy to leverage its integrated value chain as it further enhances its technology competencies and capabilities in trading and post-trade. It will also strengthen MTS and Euronext Securities Milan’s core operations, while also internalising the core trading platform of MTS and its largest IT contract.

Following the acquisition, Nexi will remain a technology services provider to Euronext under transitional arrangements and will provide other services under related commercial agreements.

“This sale, consistent with our strategy following the mergers with SIA and Nets, will allow us to focus further on our core business, digital payments, accelerating our growth in Europe and focusing on the realisation of synergies,” said Renato Martini, digital banking and corporate solutions director at Nexi.

The move by Euronext follows a strong first quarter for the exchange operator on the back of doubling trading venues and its acquisition of Borsa Italiana.

Euronext’s trading revenue grew to €150.8 million, up 57% from the same period last year, resulting from strong activity across asset classes. Elsewhere, cash trading revenue grew €94.0 million up from €69.3 million last year.

“The planned acquisition of the technology assets driving MTS and Euronext Securities Milan is a key milestone in the Borsa Italiana Group integration process,” said Stéphane Boujnah, CEO and chairman of the managing board at Euronext.

“At Euronext, owning the intellectual property of our critical operations is at the centre of our strategy, to secure the robustness of our operations and to enable further development and product innovation. We look forward to welcoming the new teams to the Euronext Group.”