Neonet, a Swedish-based agency brokerage and technology provider, has confirmed it is in exploratory discussions with a “counterpart”, widely tipped to be German exchange operator Deutsche Börse.
On Monday, German newspaper Handelsblatt reported that Deutsche Börse was planning a “double-digit million takeover” of Neonet. A statement on Neonet’s website confirmed that talks with a possible counterpart were ongoing but also stated that no further offer had been received. Deutsche Börse declined to comment.
A source close to the deal told thetradenews.com that any cooperation involving the two firms would benefit the German exchange both financially and technologically.
“A takeover of Neonet would further the development of Deutsche Börse’s equities market, but it would also give them the opportunity to profit from Neonet’s agency brokerage business,” said the source. Neonet has a market capitalisation of about $80 million.
In December 2008, Deutsche Börse held merger talks with exchange group NYSE Euronext in a bid to create the world’s largest equity and derivatives exchange, but discussions were short-lived.