Euroclear to Strengthen Offerings with MFEX Group Acquisition

Euroclear, a Belgium-based securities clearing firm, announced on Friday its decision to acquire digital fund distribution platform, MFEX Group for an undisclosed sum.

Nordic Capital is the majority shareholder of MFEX and the deal, which is now pending regulatory approvals, is expected to be closed in the second half of 2021.

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Headquartered in Stockholm, the MFEX Group was established in 1999 and offers solutions for fund companies and distributors. The company handles over 250 institutional clients and administers assets of around 320 billion euros.

The official press release detailed that the MFEX Group complements the services offered by Euroclear, which aims to build an efficient mechanism to access a broad network of end investors in a fragmented marketplace.

Complimentary Services

Commenting on the deal, Euroclear CEO, Lieve Mostrey said: “We are delighted to sign this agreement to acquire MFEX Group. We expect MFEX’s broad fund distribution network, along with its talented people, to be very complementary to Euroclear as we continue to enhance our exceptional service, extend our customer proposition and grow our business.”

Euroclear is a major name in Europe for providing settlement and custody of domestic and cross-border securities for bonds, equities and derivatives to investment funds. Its business is flourishing with a 12 percent jump in its business income last year. But, its operating income remained flat due to the impact of lower interest rates.

“Over the past [few] years, we have together with Nordic Capital invested in our platform and continued to transform the fund distribution proposition. Euroclear is a great strategic fit for the next stage of our journey. By adding our respective strengths, we will be able to build an even better and stronger solution for fund distribution,” said Jean Devambez, MFEX Group CEO.

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