Euronext is set to acquire 75% of the share capital of Global Rate Set Systems (GRSS), a provider of services to benchmark administrators, as the pan-European market infrastructure looks to bolster its index franchise and support the growth of fixed and subscription-based revenue.
GRSS provides a solution for developing, operating and monetising benchmarks, indices and other forms of regulated or unregulated market data.
GRSS calculates the critical interbank offered rate benchmarks EURIBOR (global, the world’s largest benchmark), STIBOR and NIBOR as well as PRIBOR, CIBOR and the Chilean benchmarks, and distributes this data to the global financial markets.
The transaction will be fully financed with existing cash and is expected to close in Q2 2024.
A Euronext spokesperson told The DESK the acquisition of GRSS further diversifies and strengthens Euronext’s index franchise, positioning the group as a leading player for calculating and administrating Interbank Offered Rate (IBOR) indices.
The spokesperson added, “Euronext and GRSS have complementary indices with Euronext focusing on sell-side banks and structured products issuers and where GRSS has a strong experience in running IBOR indices for banking associations and has built significant recognition for excellence, as highlighted by its capacity to provide services to critical benchmarks.”
Stéphane Boujnah, CEO and chair of the managing board of Euronext, said: “The acquisition of Global Rate Set Systems is a new milestone in broadening the Euronext data and indices offering. Euronext is today one of the leading providers of flagship equity indices, such as the CAC 40, AEX and OBX. This transaction allows us to further expand Euronext’s offering to interest rate benchmark indices and contributed data indices.”
“GRSS has a strong track record of continued revenue growth and high-quality service. We are glad to welcome to Euronext the existing GRSS management team, who will contribute to taking GRSS to the next step and further globally expand Euronext’s index capabilities,” Boujnah said.
GRSS CEO Craig McIvor said: “Euronext already has a leading position in the equity indices space, which GRSS will complement by contributing GRSS’ expertise in interest rate benchmarks and contributed data indices.”
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