The securities clearing firm based in Belgium, Euroclear as revealed the acquisition of a global digital fund distribution platform, MFEX Group, to the media. According to the news release of the firm, the acquisition transaction was finalized on Wednesday, September 15, 2021, after the intention to acquire the distribution platform was unveiled earlier this year in March.
The deal will see the combination of the FundSettle Post-Trade Service of Euroclear and the distribution platform of MFEX Group to increase the service offerings targeted at fund management distributors and firms across the globe.
The Chief Executive Officer of the Euroclear Group, Lieve Mostrey, said: “We are very happy to finalize the acquisition deal of MFEX Group. This deal will bring these two mutually complementary businesses together, and we are looking forward to liaising with the MFEX team to ensure a stronger and balanced fund distribution proposition for clients.”
The MFEX Group, which was headquartered in Stockholm, was founded in 1999, and it has its various office across the Asian and European region. The service portfolio of the firm includes rebate collection and distribution agreements, trading and custody, data and fund information, and ensuring due diligence to the procedures of Know-Your-Customer (KYC) and Anti-Money Laundering (AML) policy.
Recent Financial Results of Euroclear Group
It was reported in July that Euroclear Group has a strong growth in its net profits and operating income. in the first half of the year 2021, the income of the business reached €723 million, which is 13% higher than the figure recorded for the same period in 2020. In addition, the net profit realized in H1 2021 is €251 million, which is 11% higher than the figure recorded in the same period in 2020 when the total net profit of the firm sits around €227 million.
For the first half of 2021, there was an increase in the EPS of Euroclear by 11% though the operating costs increased to €444 million, showing a 4% increase in the figure. In H1 2020, the operating cost was about €428 million. Outside these recorded growths in the net profit and income of the business, the company saw a massive increase in the total assets in their custody.
For the past few years now, the firm has seen consistent and steady growth in its income. When the income of the business in 2020 was compared on a y-o-y basis with 2019, there was a 12% increase.