Deutsche Börse Group acquires Kneip

Deutsche Börse Group has acquired Luxembourg-based fund data management and reporting solutions company Kneip.

Posted lundi, mars 28 2022
Deutsche Börse Group acquires Kneip

Deutsche Börse Group has acquired Luxembourg-based fund data management and reporting solutions company Kneip.

By acquiring Kneip, European fund data specialist Deutsche Börse aims to create a leading fund-data center based in Luxembourg. For Kneip, the challenge was to find the right partner to finance its development. The transaction was expected to be completed by the end of March. No financial details were disclosed.

The sale of Kneip to Deutsche Börse Group was negotiated over many months by Hugues Delcourt, the current chairman of the board. The recruitment of Enrique Sacau as CEO in July 2020 was part of this process. Bob Kneip, the company's founder and current vice president, said, "The way the market, the business and the technology were changing, significant investment was going to be required if we were to stay competitive. I wanted the Kneip name to remain on the sign and to continue to shine nationally and internationally. Deutsche Börse Group was the big brother with the same vision and values as us. This was important for me, and also for our employees."

A new fund-data centre

For Deutsche Börse Group, the objective is to strengthen one of the growth drivers considered strategic for the group and its Luxembourg subsidiary, Clearstream Banking Luxembourg: the investment fund services business, which represents about one third of Clearstream's revenues and is growing rapidly. "This is Clearstream's growth business," Philippe Seyll, CEO of Clearstream Banking Luxembourg and head of investment fund services at Deutsche Börse Group, said.

The takeover of Kneip will form "the basis for the creation of a leading Luxembourg-based fund-data center", the two companies said in a statement. "This is a unique opportunity to create a European fund-data champion based in Luxembourg," added Seyll.

From an operational point of view, "Kneip will seek to develop its activities and expand its range of services within the Deutsche Börse Group, including the data and back office services provided by Clearstream. Deutsche Börse Group also intends to connect Kneip's services to its established fund services platforms. The focus will be on significantly simplifying the data and service management process for asset managers and other market participants across the fund ecosystem," he said.

Bob Kneip to step down
While Kneip's management will remain unchanged following the transaction, Bob Kneip will step aside. He plans to refocus on his family, friends and the independent directorships he holds. In the industry sector, he says. "I don't want to rush into anything," he adds, answering a question about future plans. "It's been a great adventure and I'm very proud of it.”

Founded in 1993, Kneip is a leader in fund-data management and regulatory reporting solutions for the asset management industry. The company manages investor information and data publishing for over 10,000 funds in more than 40 countries, including the production of over 200,000 reporting solutions. Kneip currently manages over 30% of the ISINs of EU-based funds.