Euroclear expands funds business into Spain by acquiring a strategic stake in Inversis

Euroclear acquires a strategic stake in Inversis with a committed plan to full ownership by end 2027
The acquisition aligns with Euroclear’s long-term growth objectives and strengthens Euroclear’s presence in Spain
The combination accelerates the growth of Euroclear’s end-to-end funds platform solution, Euroclear FundsPlace
Inversis’ technology-led, diversified and resilient business model underpinned by continued growth complements Euroclear’s existing funds business

BRUSSELS, July 19, 2024 /CNW/ — Euroclear today announces it has acquired a strategic stake of 49% in Inversis, a leading provider of global investment technology solutions and outsourced financial services. Euroclear will become the full owner of Inversis by end 2027. Financial details of the transaction have not been disclosed. The transaction is subject to customary closing conditions and regulatory approvals.

Founded in 2001 and headquartered in Madrid, Inversis is a wholly-owned subsidiary of Banca March. As a provider of investment technology solutions, the company offers funds platform services, securities outsourcing, intermediation, funds depository and various other services to financial institutions, insurance companies and new players in the distribution of investment products.

Building on the acquisitions of MFEX in 2021 and Goji in 2023 as well as the recent strategic investment in IZNES, Euroclear continues to enhance its Euroclear FundsPlace® offering, its end-to-end funds platform solution across mutual and money market funds, alternative funds and ETFs. Euroclear administers €3.3 trillion of fund assets, servicing approximately 3,000 fund distributors and 2,500 fund management companies spanning across 85 countries.

By partnering with Inversis, Euroclear aims to accelerate the delivery of its funds’ strategy, and increase its pan-European coverage thanks to Inversis’ significant presence on the Spanish market. Inversis will benefit from Euroclear’s international reach and proven capabilities as leading capital market infrastructure.

Euroclear’s investment in Inversis will accelerate the Spanish company’s growth. Further investments in technology and workforce will be made to support the growth of the company. The agreement will strengthen the Spanish company’s global footprint, after it successfully consolidated its value proposition in Luxembourg through the acquisitions of Banque Havilland’s depositary business and 40% of the fund management and administration firm Adepa. It will also afford robust support for Inversis’ large clients business line.

The transaction is immediately EPS accretive for Euroclear, with the expected return on investment above Euroclear’s cost of equity in the first year of full ownership. The regulatory capital impact on Euroclear is limited and the transaction is fully financed by existing cash.

Valérie Urbain, Chief Executive Officer of Euroclear, said: “We are delighted to join forces with Inversis, a highly attractive business which aligns with our ambition to offer a true end-to-end solution to our clients on the full spectrum of funds products across all regions in Europe and beyond. Inversis’ diversified and resilient business model driven by continued growth perfectly complements Euroclear’s business. As a European leader with a global presence committed to supporting the Capital Markets Union (CMU), Euroclear will improve its coverage in Spain, a market offering significant growth opportunities in the fund distribution space.“

Banca March CEO, José Luis Acea, said: “Since Banca March acquired full ownership of Inversis in 2016, we have supported its growth strategy, which has been guided by a commitment to offering its institutional clients comprehensive, global solutions as catalysts for their financial asset distribution businesses, with a clear ambition to grow the company’s global footprint. We have found in Euroclear, a leading provider of financial services for the largest international banking entities, the ideal partner to take the company to a new level of growth.”

Inversis CEO, Alberto del Cid, said: “By combining with Euroclear, a prominent provider of financial services for all the major global banking institutions, Inversis will reinforce its large clients’ business. Likewise, Inversis’ existing clients (which include Banca March) will benefit from a stronger value proposition across all the firm’s business areas, including its fund distribution platform, which will be supported by Euroclear’s FundsPlace solution, positioning it as one of the leading global players.”

About Inversis

Inversis, a wholly-owned subsidiary of Banca March, is Spain’s leading provider of global investment technology solutions and outsourced financial services for financial institutions, insurance companies and new players in the investment product distribution space.

Since its inception, Inversis has invested consistently in technology and innovation to adapt seamlessly to the needs of the institutional sector. The technology delivered by Inversis allows its institutional clients to outsource non-core activities and processes, enhancing their own efficiency.

Inversis, as well as being an investment product platform, provides intermediation, settlement and custody services, state-of-the-art technology outsourcing solutions, treasury and capital markets services, depositary services, online brokerage services and research services. www.inversis.es

About Banca March

Banca March is one of the leading banks in private and corporate banking in Spain. It is also the only 100% family-owned bank since its incorporation in 1926. Consistently with a cautious and long-term approach, Banca March’s business model is underpinned by solid financial and capital metrics: highest capital ratio CET 1 (21,26%) in the Spanish market, NPL ratio among the lowest (1.88% as of December 2023 vs an average of 3.54%), and liquidity ratios (LCR at 325.9% and DTL at 168.1%) among the highest in Europe. Banca March’s robust business model has also been acknowledged by Moody’s. The rating agency has raised the bank ‘s long-term deposit rating to A2 with a positive outlook, ranking at the top in the Spanish banking system and ahead of the Kingdom of Spain ‘s, which stands at Baa1. Banca March holds a significant stake in Corporación Financiera Alba, a holding Company with stable, long-term investments in companies such as Naturgy (indirect), Acerinox, Profand, Ebro Foods, Viscofan, Atlantic Aviation and Parques Reunidos, among others.

About Euroclear

Euroclear group is the financial industry’s trusted provider of post trade services. Guided by its purpose, Euroclear innovates to bring safety, efficiency and connections to financial markets for sustainable economic growth. Euroclear provides settlement and custody of domestic and cross-border securities for bonds, equities and derivatives and investment funds. As a proven, resilient capital market infrastructure, Euroclear is committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise. The Euroclear group comprises Euroclear Bank, the International and Irish CSD, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden, Euroclear UK & International.

Contact Euroclear:

Thomas Churchill / [email protected] / +32 471 63 65 35

Pascal Brabant / [email protected] / +32 475 78 36 62

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