Euronext Acquire Majority Stake in Global Rate Set Systems

Euronext has made a significant move by announcing its agreement to acquire 75% of the share capital of Global Rate Set Systems (GRSS), thus acquiring Global Rate Systems and broadening its index franchise. This strategic acquisition will fortify Euronext’s index franchise, enhance its capabilities in contributed data indices, and secure data from a highly esteemed provider.

Founded in 2009 and headquartered in New Zealand, GRSS is a pivotal service provider to benchmark administrators responsible for generating three critical interest rate benchmarks in Europe: EURIBOR, STIBOR, and NIBOR. Additionally, GRSS owns and operates regulated benchmark administrators for CIBOR (Denmark) and PRIBOR (Czech Republic) and manages benchmark administration for Chile’s TAB, TADO, and ICP indices. Offering comprehensive solutions for developing, operating, and monetizing benchmarks and indices, GRSS plays a vital role in the financial ecosystem.

Euronext’s acquisition of GRSS marks a significant diversification and strengthening of its index franchise, positioning the group as a key player in calculating and administering Interbank Offered Rate (IBOR) indices. Furthermore, by partnering with GRSS management and its founder, Euronext aims to enhance GRSS’s position as a premier provider in the contributed data and indices sector, leveraging Euronext’s global leadership and recognition. 

Euronext Acquire Majority Stake in Global Rate Set Systems

This strategic move is poised to contribute to Euronext’s revenue growth, encompassing both fixed and subscription-based models. Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext expressed his enthusiasm regarding the acquisition, highlighting its significance in expanding Euronext’s data and indices offering. Moreover, he underscored the substantial growth potential and quality of service that GRSS brings to the table, emphasizing the alignment of this acquisition with Euronext’s strategic goals.

Craig McIvor, Co-founder and CEO of GRSS echoed similar sentiments, emphasizing the benefits and growth opportunities stemming from being a part of Euronext. McIvor noted the complementary nature of GRSS’s expertise in interest rate benchmarks and contributed data indices with Euronext’s leading position in equity indices, projecting a synergistic relationship between the two entities.

Subject to regulatory approvals, they anticipate completing the transaction in the second quarter of 2024. With Euronext’s robust capital allocation policy and expectations of exceeding WACC within three to five years post-closing, the acquisition of GRSS signifies a strategic move towards bolstering Euronext’s market presence and diversifying its revenue streams.

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