Euronext has announced the acquisition of 75% of the share capital of Global Rate Set Systems (GRSS), a prominent provider of services to benchmark administrators. This acquisition, shared today, marks a significant advancement for Euronext’s index franchise, enhancing its capabilities in contributed data indices.

Established in 2009 and headquartered in New Zealand, GRSS is a pivotal service provider to benchmark administrators responsible for Europe’s critical interest rate benchmarks, including EURIBOR®, STIBOR®, and NIBOR®. Additionally, GRSS owns and operates regulated benchmark administrators for CIBOR® (Denmark) and PRIBOR (Czech Republic) and manages benchmark administration for indices in Chile.

Euronext Strengthens Market Infrastructure with GRSS Acquisition

The acquisition aligns with Euronext’s strategic vision to diversify and strengthen its index franchise, particularly in calculating and administering Interbank Offered Rate (IBOR) indices. Leveraging GRSS’s expertise, Euronext aims to solidify its position as a leading player in the contributed data and indices domain.

Also, Stéphane Boujnah, Euronext’s Chief Executive Officer and Chairman of the Managing Board, expressed enthusiasm about the acquisition, emphasizing its significance in expanding Euronext’s offering beyond equity indices to interest rate benchmark indices and contributed data indices. Boujnah highlighted GRSS’s exemplary revenue growth and service quality track record, anticipating that the acquisition would propel both entities toward greater global recognition.

Craig McIvor, co-founder and chief executive officer of GRSS, echoed Boujnah’s sentiments, emphasizing the benefits and growth prospects of integration with Euronext. McIvor underscored Euronext’s established position in equity indices, envisioned GRSS’s complementary expertise in interest rate benchmarks, and contributed data indices as a catalyst for further success.

The transaction, subject to regulatory approvals, is slated for completion in the second quarter of 2024. With existing cash financing the deal, Euronext anticipates a positive return on capital employed (ROCE) exceeding the weighted average cost of capital (WACC) within three to five years post-closure without impacting its deleveraging trajectory.

This acquisition signifies an expansion for Euronext and underscores its commitment to offering comprehensive solutions in the evolving landscape of market infrastructure and index provision.

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