Connect with us

Latest News

Deutsche Börse creates leading index and portfolio/risk analytics business

Published

on

Reading Time: 4 minutes

 

Deutsche Börse AG (Deutsche Börse) and Axioma, Inc. (Axioma) announced that Axioma has agreed to be acquired by Deutsche Börse for US$850 million cash and debt free (around US$820 million equity value) and will be combined with Deutsche Börse’s index businesses (STOXX® and DAX®) valued at €2.6 billion.

The combination will create a fully integrated, leading buy-side intelligence player that will provide unique products and analytics to meet the growing demand for an end-to-end platform. Axioma, a global provider of cloud-based portfolio and risk management software solutions, and Deutsche Börse’s index business are highly complementary and together will offer a broad suite of index and analytics products with global coverage. As a result, the combined company is expected to materially grow revenue and EBITDA, and is expected to achieve annualized pre-tax run-rate synergies of around €30 million by the end of 2021.

As part of the transaction, Deutsche Börse has entered into a strategic partnership with General Atlantic, a leading global growth equity investor. General Atlantic will invest around US$715 million into the new company, which will be used to finance the acquisition of Axioma.

Theodor Weimer, CEO of Deutsche Börse, said, “This transaction is a step change for our pre-trading business and fully in line with our Roadmap 2020 strategy, which besides organic growth builds on programmatic M&A and new technologies. We are also excited about the partnership with General Atlantic and believe it will help to further accelerate growth of the combined business and to achieve strong value creation.”

Stephan Leithner, Member of the Executive Board of Deutsche Börse AG, responsible for the Post-Trading, Data & Index business, added, “We are convinced of the highly complementary nature of the combination, which positions us extremely well to benefit from key growth trends. We have a long-standing strategic partnership with Axioma and value its management. We look forward to growing our analytics and index platform together.”

Sebastian Ceria, founder and CEO of Axioma, said, “The union of Axioma, STOXX and DAX under the Deutsche Börse umbrella creates a growth company that is uniquely equipped to help clients capitalize on the critical trends now reshaping the investment-management landscape. The combination of STOXX’s indexing expertise with Axioma’s best-of-breed analytical capabilities in risk management, portfolio construction and performance attribution is expected to result in strong near-term revenue synergies and creation of a platform for future growth.”

Gabriel Caillaux, Managing Director and Head of EMEA for General Atlantic, stated, “We have closely followed the development of Deutsche Börse’s index assets for many years as we witness the global shift to passive products and the rise of indexed investing strategies. We are excited to be partnering with such a renowned firm. We are also highly impressed with Axioma’s track record and believe this combination provides a strong foundation for future growth. After our detailed analysis, we are confident that the combination will generate significant value creation and strong investor returns.”

Anthony Arnold, Managing Director at Goldman Sachs, said, “We have been delighted to support Axioma as both an investor and meaningful customer of their best-in-class solutions and wish the management team continued success as they grow what will be an important and leading focused business with a compelling product suite.”  Josh Lewis, Managing Partner of Salmon River Capital, added, “We are proud to have been a significant Axioma shareholder since 2007, and we are pleased with this outcome.”

Founded in 1998, Axioma is a global provider of multi-asset class portfolio and risk management software solutions. The company delivers proprietary solutions and data services offerings to over 400 leading asset managers, asset owners, sell-side participants and hedge funds. Axioma generated approximately US$100 million in annual contract value (“ACV”) revenue in 2018 and has grown ACV at a 23 percent CAGR since 2010. Axioma is currently investing its entire cash flow in further growing the business. The transition to axiomaBlue™, Axioma’s cloud-based infrastructure platform, other new product offerings and strategic expansion are expected to drive ACV growth in line with historical experience.

Deutsche Börse’s index business is the #4 global index player (based on last twelve months (LTM) 2018 September revenue) and home of the #1 European tradable index, the EURO STOXX 50® (based on the notional value of traded derivatives contracts in 2018). The index business on a stand-alone basis generated €168 million in gross revenues and €115 million in EBITDA in 2018 and has grown at double-digit rates over the past five years.

Deutsche Börse and Axioma have had an existing partnership since 2011 and have jointly developed innovative products, including factor indices and ETF products. All Deutsche Börse businesses will benefit from direct access to the buy-side and the enhanced analytics platform.

Management anticipated that the combined company will be uniquely equipped to address trends that are reshaping investment management, including the shift to passive, the demand for smart beta and the transition towards index customization using technology. The combination will provide Axioma’s current clients with closer integration to data from a leading family of indices, which are critical components for designing investment strategies. Additionally, Deutsche Börse’s index business clients will benefit from access to Axioma’s powerful analytics that allow for creation and testing of custom indices.

The combined company will be led by current Axioma CEO Sebastian Ceria. He will seek to preserve the strengths of both Axioma and the Index Business and accelerate the entrepreneurial spirit. A number of the Axioma management team, as current owners, will reinvest around US$105 million of their sales proceeds into the combined company alongside General Atlantic. As a result, and depending on the roll-over, Deutsche Börse is expected to own approximately 78 percent of the new company, General Atlantic around 19 percent, and the Axioma management about 3 percent.

The transaction is subject to approval by the relevant competition authorities and further customary conditions and is expected to close in the third quarter 2019.

Perella Weinberg Partners LP and Deutsche Bank AG served as financial advisors to Deutsche Börse. Hengeler Mueller and Cravath, Swaine & Moore LLP served as legal counsel to Deutsche Börse. Centerview Partners LLC and Sullivan & Cromwell LLP served as financial advisor and legal counsel to Axioma. Milbank served as legal counsel to General Atlantic.

 

SOURCE Axioma

Artificial Intelligence

Experienced Industry Veteran Tony Mingo Joins O’Neil Digital Solutions

Published

on

Tony Mingo, Managing Director, Professional Services

 

O’Neil Digital Solutions (ODS), a leader in data-driven publishing and plan sponsor/participant communication services, recently announced that long-time financial technology (fintech) veteran Tony Mingo has joined the organization as its Managing Director, Professional Services in the financial vertical.

Mingo’s role is “to assist cutting-edge companies in their data-transformation strategies.”

Before joining ODS, Mingo founded vWise, Inc., a retirement plan participant digital thought-leader, in 2006, with a vision of creating interactive solutions that engage employees with their benefits. His experience as a leader in the financial services industry spans over 28 years, with additional experience in executive management leadership within the technology industry in Silicon Valley.

“With Tony’s experience and relationships in the financial industry, we are excited to have him build and lead our Professional Service in the Financial division at ODS,” said Terry Chan, President and COO of ODS.

Mingo will focus on growing the software and professional services offerings for the firm’s financial and insurance lines of business.

“It’s about delivering a proven digital transformation strategy, from traditional output to Omni-channel conversion, as well as process improvement, change management, and SAAS platforms that serve six different verticals (retirement, banking, brokerage, property/casualty, wealth management and life insurance/annuity),” Mingo said. “It has never been more imperative that organizations provide world-class customer experiences to plan participants to strengthen their reputations and brand loyalty. Meeting these expectations requires a deeper understanding of an individual customer’s needs across the entire customer journey.”

In early 2019, O’Neil launched its Plan Health Dashboard. The Plan Health Dashboard uses a client’s plan analytics to assign a plan health score based on underlying metrics such as participation rates, income replacement ratios, and asset diversification. The metrics can be weighted to define the scoring methodology.

ODS’ Omni-channel solution, called ONEsuite, provides clients with a flexible platform to create, manage and deliver highly-personalized marketing, sales and business documents in any media and format requested by an audience.

 

SOURCE O’Neil Digital Solutions

Continue Reading

Artificial Intelligence

Konnect -Volkswagen Group Innovation Hub TLV, Chose Seebo as the Winner of Its Startups Challenge

Published

on

 

Seebo, a pioneer in process-based Artificial Intelligence, announced today it has won the Konnect- VW Group Innovation hub TLV Startups Challenge. Seebo was chosen following a tough judging process, by a jury of experts from the Volkswagen Group leading car brands such as Volkswagen, Audi, SEAT, Skoda, Porsche, VW Commercial Vehicles and more.

The goal of the challenge was to find technologies that present clear business potential, cost reduction, and address real challenges.” Says Stephanie Vox, Managing Director, Konnect. “Seebo’s solution is market-ready and can rapidly impact production efficiency and costs. It was chosen based on the Volkswagen Group high standards and commitment to deliver to our customers top quality cars today and in the future.”

Seebo was selected out of dozens of start-ups that participated in the challenge. The prize recognizes Seebo’s ground-breaking technology and ensures a deep collaboration with the VW Group, for which a sum of up to 25K Euros is granted.

We are honored to have been chosen as winners of the Smart Startups Challenge for 2019, by the leading VW Group brands, which are known for quality and innovation.” Says Lior Akavia, Seebo co-founder and CEO. “We look forward to this collaboration and to being part of the VW Group on-going pursuit for improvement in production efficiency and excellence.

Seebo enables automotive manufacturers to reduce processes-driven quality losses and failures in production and assembly processes. Collecting and analyzing data from production lines and automated inspection systems, Seebo leverages predictive analytics and automated root-cause analysis, to ensure production efficiency is kept at its highest level.

 

SOURCE Seebo

Continue Reading

Artificial Intelligence

Innovative Healthcare Startup Kermit Leverages Mendix-built Analytics Platform to Expand Services Nationwide

Published

on

 

Mendix, a Siemens business and the global leader in low-code and no-code application development for the enterprise, today announced that Kermit, the first spend-management platform for hospitals in the area of implantable medical devices, is announcing plans to expand their services nationwide. Kermit’s innovative analytics platform, enabling hospitals to track and manage contracts, billings, and vendor compliance, was built with a single Mendix developer in less than a year. Today’s announcement underscores the fact that low code technology from Mendix is ripe for implementation within the healthcare industry.

As knee, hip, and cardio implants move from package to patient, the Mendix-built platform captures data and provides end-to-end visibility into a supplier category known for its notoriously opaque pricing and batch invoicing. With Kermit, the accurate cost and use of each medical device is captured on handheld devices as the medical item moves from point-of-service in the operating room, accurate patient billing and vendor invoice payment, and finally aggregated for contract negotiations by healthcare executives. The data-driven analytics platform transforms a hospital’s previously siloed, paper- and spreadsheet-based data collection system into a cost-savings tool that flags supplier trends, optimizes workflows and spending, and provides quick dashboard reporting that has been proven to save hospitals millions of dollars.

“We are thrilled to announce our plans to expand the Kermit services nationwide,” says Richard Palarea, CEO and co-founder of Kermit, whose company now manages 40% of the total implant spend transacting in Maryland. “Our goal is not only to provide better data and save money for resource-strapped hospitals. We also want to shine a light on fraud and abuse within the medical device marketing industry and align value and spend management initiatives for the people that dedicate their lives to saving others. Our customers are now seeing significant savings in their medical device spending category. We wouldn’t have been able to achieve all this had it not been for Mendix. We built our platform using Mendix, and I attribute a large portion of our success to the ease of using Mendix’s low-code platform.”

Providing transparency and control

Fraud and abuse often run rampant in the sales and marketing of drugs and medical devices and is difficult to track across the healthcare industry’s siloed or proprietary data warehouse systems. Kermit provides a transparent analytics platform for surgeons, supply chain managers, and healthcare executives that connects medical device data to robust visualization and analysis, empowering the full team to make quality decisions on behalf of the patient. For surgeons, the platform provides an easy and transparent way to review the costs of implantable medical devices while discussing options with patients. Kermit also ensures fair and accurate billing by keeping cases, contracts, and devices updated and organized for supply chain managers. Additionally, Kermit pulls in external business intelligence such as supplier spending trends, contract compliance, and FDA recalls of medical devices. Such items, flagged for healthcare executives and procurement managers, provide knowledge and insight on device-related inefficiencies, equipping hospital to better navigate the ever-changing reimbursement environment.

Saving hospitals millions

Hospitals are working under immense pressure to manage costs and increase savings, with many operating on profit margins of 3 percent or less. Kermit’s founding principle is to return the balance of power back to the hospital by exposing ways to eliminate millions of dollars per year in the category of medical device spending and improving patient care. The University of Maryland Medical System, which has used the Kermit analytics platform over the course of two years, has achieved upwards of $30 million in savings, with greater visibility to vendor activity and collaboration between supply chain and surgeons. Hospitals in the mid-Atlantic region that have adopted Kermit report saving 30% on average of their total implant spend per year.

Built in nine months

Palarea cites Mendix’s flexible approach to rapid application development as a key competitive differentiator. “Without Mendix, it would have taken us nearly twice as long to develop our product and required us to hire five to ten developers instead of one,” he says. “We would have lost the window of being first to market this innovative approach.”

Mendix’s cloud-native capability enables Kermit to bypass hospital firewalls for additional time and efficiency gains. “Hospital IT departments can be bottlenecks,” Palarea admits. “Enterprise solutions can take between one to three years to implement. However, our customers access our Mendix-built platform via web browsers and connectivity. This lets Kermit bypass IT involvement and deploy our solution in less than seven days.”

The healthcare industry’s digital transformation depends on healthy data. “To leverage the inherent promise of big data analytics in the healthcare supply chain of medical devices is only achieved with a deep understanding of what customers and end users truly need and use on a daily basis,” says Jon Scolamiero, Mendix manager, architecture and governance. “Mendix’s application development tools are designed to foster collaboration between business experts and professional developers. Working together, they can build and deploy responsive, mission-critical applications that quickly make an impact.”

Palarea agrees. “Mendix has allowed us to be extremely nimble and flexible,” he says. “We are literally innovating in the midst of our hospital customers who are unaccustomed to seeing value delivered so rapidly and well below the expected budget numbers.”

Continue Reading

Trending

Roboticulized is a news publishing website which digests / hand picks the latest news about the AI industry, and serves them to you daily.

Contact us: pressroom@roboticulized.com

© Roboticulized.com 2019 - part of PICANTE Media. All rights reserved. Registered in Romania under Proshirt SRL, Company number: 2134306, EU VAT ID: RO21343605. Office address: Blvd. 1 Decembrie 1918 nr.5, Targu Mures, Romania