Deutsche Boerse enhances ESG focus with ISS acquisition
01 March 2021 Germany
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Deutsche Boerse has completed the acquisition of an 81 per cent majority stake in the governance, environmental, social and governance (ESG) data and analytics provider Institutional Shareholder Services (ISS).
The acquisition, which was announced in late 2020, follows receipt of all necessary regulatory approvals.
Deutsche Boerse and ISS are now able to serve the growing demand for in-depth extra-financial data, research and analytics.
ISS will continue to operate with the same editorial independence in its data and research organisation that is in place today.
Meanwhile, Deutsche Boerse commits to principles of protecting the independence and integrity of ISS’ research, recommendations, ratings and other analytical offerings.
To that end, a number of non-interference policies have been put in place. ISS has also established a policy that it will not provide proxy research or other analytical research on Deutsche Boerse.
Stephan Leithner, member of the executive board of Deutsche Boerse, responsible for the group’s pre- and post-trading businesses, comments: “The quality, precision and breadth of ISS’ data and research is unique in the market. Especially the company’s ESG expertise and data capabilities are highly complementary to Deutsche Börse’s businesses along the entire value chain.”
According to Leithner, this acquisition is a logical step in Deutsche Boerse’s ESG growth strategy, “adding an important piece to the puzzle to become one of the world's leading market infrastructure players on this critical development”.
Gary Retelny, president and CEO of ISS, says: “We are pleased to be joining the Deutsche Boerse group of companies and look forward to working with our new colleagues in furtherance of our long-standing mission to empower investors and companies to build for long-term and sustainable growth.”
“ISS will continue to deliver the same independent and high-quality research, ratings, and other offerings our clients have come to expect, and we will continue to invest and innovate to ensure they receive next-generation solutions,” adds Retelny.
This transaction has been conducted in partnership with current ISS management and Genstar Capital, a leading growth equity investor, who will both continue to hold a stake in the company.
The acquisition, which was announced in late 2020, follows receipt of all necessary regulatory approvals.
Deutsche Boerse and ISS are now able to serve the growing demand for in-depth extra-financial data, research and analytics.
ISS will continue to operate with the same editorial independence in its data and research organisation that is in place today.
Meanwhile, Deutsche Boerse commits to principles of protecting the independence and integrity of ISS’ research, recommendations, ratings and other analytical offerings.
To that end, a number of non-interference policies have been put in place. ISS has also established a policy that it will not provide proxy research or other analytical research on Deutsche Boerse.
Stephan Leithner, member of the executive board of Deutsche Boerse, responsible for the group’s pre- and post-trading businesses, comments: “The quality, precision and breadth of ISS’ data and research is unique in the market. Especially the company’s ESG expertise and data capabilities are highly complementary to Deutsche Börse’s businesses along the entire value chain.”
According to Leithner, this acquisition is a logical step in Deutsche Boerse’s ESG growth strategy, “adding an important piece to the puzzle to become one of the world's leading market infrastructure players on this critical development”.
Gary Retelny, president and CEO of ISS, says: “We are pleased to be joining the Deutsche Boerse group of companies and look forward to working with our new colleagues in furtherance of our long-standing mission to empower investors and companies to build for long-term and sustainable growth.”
“ISS will continue to deliver the same independent and high-quality research, ratings, and other offerings our clients have come to expect, and we will continue to invest and innovate to ensure they receive next-generation solutions,” adds Retelny.
This transaction has been conducted in partnership with current ISS management and Genstar Capital, a leading growth equity investor, who will both continue to hold a stake in the company.
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