Deutsche Börse’s $2.275 Billion Acquisition of Institutional Shareholder Services

Cravath, alongside Hengeler Mueller, represented Deutsche Börse, while Willkie Farr & Gallagher LLP represented ISS and Genstar Capital in the transaction.

Deutsche Börse AG, Institutional Shareholder Services Inc. (ISS) and Genstar Capital LLC announced that Deutsche Börse, an international exchange organization and market infrastructure provider, will acquire a majority stake of approximately 80% in ISS, a governance, ESG data and analytics provider, valuing it at USD $2.275 billion. Genstar Capital and current management will continue to hold a stake of approximately 20%.

The partnership of global market infrastructure provider Deutsche Börse with leading corporate governance, ESG, data and analytics provider ISS is intended to form a foundation for future growth in ESG-based investing globally, positioning Deutsche Börse as a leading global provider of ESG data and analytics.

ISS’ more than 4,000 clients include many of the world’s leading institutional investors who rely on ISS’ objective and impartial governance and ESG data and research, as well as public companies focused on ESG and governance risk mitigation as a shareholder value enhancing measure. This transaction is intended to bring a strengthened capital structure to ISS and the ability to further accelerate organic and inorganic growth initiatives for the benefit of ISS’ clients while leveraging the infrastructure of Deutsche Börse and, in particular, its global index franchise.

As an international exchange organization and market infrastructure provider, Deutsche Börse Group includes business areas along the entire value chain in exchange trading, including the admission, trading and clearing, and custody of securities and other financial instruments, the dissemination of market data, as well as the management of collateral and liquidity. With more than 6,500 employees, it is headquartered in Frankfurt/Rhine-Main, with a strong presence in 38 locations globally.

With approximately $19 billion of assets under management, Genstar Capital is a leading private equity firm which targets investments focused on segments of the financial services, healthcare, industrial, and software industries.

The Cravath team advising Deutsche Börse was led by partner Aaron M. Gruber (Picture) and included associates Lee M. Blum, Ryan J. Patrone and Isaac H. Todd on M&A matters; partner Eric W. Hilfers and associates Sally Ye and Brian Diliberto on executive compensation and benefits matters; partner Kara L. Mungovan and associates Cecily Xi and Carlos Nicholas Obando on tax matters; partner David J. Kappos and associate Rohan E. George on intellectual property matters; partner Matthew Morreale on environmental matters; partner John W. White and associates Zachary R. Smith and Ashley Gust on regulatory matters; and practice area attorneys Brian M. Budnick and Laurel R. Berkowitz on real estate matters.

The Willkie team was led by partners Jeffrey Poss and Manuel Miranda in New York, and Georg Linde in Frankfurt, along with associates Morgan McDevitt and Miriam Steets.

The Hengeler Mueller team was led by Daniel Möritz and Hans-Jörg Ziegenhain and included Christian Schmies, Christian Hoefs, Johannes Tieves, Markus Ernst, Alexander Bekier, Patrick Wilkening, Daniel Illhardt, Thomas Daniel Weierer, Johannes Schmidt, Marius Marx, Conrad Ruppel and Daniel Adolph.

Involved fees earner: Laurel Berkowitz – Cravath Swaine & Moore; Lee Blum – Cravath Swaine & Moore; Brian Budnick – Cravath Swaine & Moore; Brian Diliberto – Cravath Swaine & Moore; Rohan George – Cravath Swaine & Moore; Aaron Gruber – Cravath Swaine & Moore; Ashley Gust – Cravath Swaine & Moore; Eric Hilfers – Cravath Swaine & Moore; David Kappos – Cravath Swaine & Moore; Matthew Morreale – Cravath Swaine & Moore; Kara Mungovan – Cravath Swaine & Moore; Carlos Nicholas Obando – Cravath Swaine & Moore; Ryan Patrone – Cravath Swaine & Moore; Zachary Smith – Cravath Swaine & Moore; Isaac Todd – Cravath Swaine & Moore; John White – Cravath Swaine & Moore; Cecily Xi – Cravath Swaine & Moore; Sally Ye – Cravath Swaine & Moore; Daniel Adolph – Hengeler Mueller; Alexander Bekier – Hengeler Mueller; Markus Ernst – Hengeler Mueller; Christian Hoefs – Hengeler Mueller; Daniel Illhardt – Hengeler Mueller; Marius Marx – Hengeler Mueller; Daniel Möritz – Hengeler Mueller; Conrad Ruppel – Hengeler Mueller; Johannes Schmidt – Hengeler Mueller; Christian Schmies – Hengeler Mueller; Johannes Tieves – Hengeler Mueller; Thomas Daniel Weierer – Hengeler Mueller; Patrick Wilkening – Hengeler Mueller; Hans-Jörg Ziegenhain – Hengeler Mueller; Georg Linde – Willkie Farr & Gallagher; Morgan McDevitt – Willkie Farr & Gallagher; Manuel Miranda – Willkie Farr & Gallagher; Jeffrey Poss – Willkie Farr & Gallagher; Miriam Steets – Willkie Farr & Gallagher;

Law Firms: Cravath Swaine & Moore; Hengeler Mueller; Willkie Farr & Gallagher;

Clients: Deutsche Börse; Genstar Capital; Institutional Shareholder Services;

Author: Ambrogio Visconti