IHS Markit Acquires DeriveXperts04.16.2018 By Rob Daly Editor-at-Large
IHS Markit, a world leader in information, analytics and solutions, has purchased DeriveXperts, a provider of valuation services for OTC derivatives and other complex financial securities. The acquisition complements and enhances the existing derivatives data and valuations businesses at IHS Markit.
“IHS Markit strives to be the best source of independent valuations of OTC derivatives and other complex financial assets and this expansion shows our commitment to providing customers with exceptional coverage and quality,” said Gianluca Biagini, managing director for derivatives data and valuation services at IHS Markit. “DeriveXperts brings us a skilled team and a high-quality service that extends our offering for derivatives, particularly in equity-linked products, an area that we see growing across all of our customer segments.”
“We are excited to take this next step forward in serving the derivatives marketplace as part of IHS Markit,” said Francis Cornut, founder and CEO of DeriveXperts. “Together, we will continue to deliver unparalleled expertise and best-in-class capabilities that move with the speed of evolving global markets.”
DeriveXperts specializes in daily and monthly computations of hard-to-value assets, such as equity derivatives, FX derivatives, interest rate derivatives and structured notes. DeriveXperts is headquartered in Paris and was founded in 2003.
IHS Markit has more than 100 employees in Paris and this acquisition adds to that team. IHS Markit also gains a strong client base in France and French-speaking Europe, including banks, investment managers, insurance companies, private banks and other types of wealth management firms.
IHS Markit provides pricing and valuation services, including independent mark-to-market valuations and risk analytics, for vanilla and exotic OTC derivatives, fixed income cash products, private equity and illiquid debt investments. Valuations are accompanied by detailed inputs, liquidity metrics and reference data to provide maximum transparency and market context. Customers include insurance companies, asset managers, fund administrators, custodians and banks.
The deal should boost the firm's LME operations in Germany, say officials.
The deal entails the acquisition of three of the firm's brokerage businesses.
Schwab estimates a $1.8B to $2B run-rate expense synergies within three years of the deal's close.
The acquisition extends the vendor's SaaS offerings to private debt markets.
The purchase should bolster the firm's trading technology and quantitative research.