Euronext announced Tuesday that it has acquired Substantive Research, a London-headquartered provider of research and market data benchmarking.
Euronext Acquires London-Based Substantive Research
Euronext believes the acquisition will strengthen its investor services segment and offer enhanced capabilities to its clients.
Founded in 2015, Substantive Research provides in-depth analysis of product and pricing comparisons for investment research spend, market data, and investment research content.
The company’s services are used by over 100 global clients, including asset managers, hedge funds, wealth managers, sell-side institutions, and private markets in Europe and North America.
Euronext, through its subsidiary Commcise, already offers cloud-based solutions for commission management, research valuation, and consumption tracking.
The combination of Commcise and Substantive Research is expected to provide Euronext clients with a more exhaustive set of tools to manage their research and market data needs.
Following the integration of Substantive Research, Euronext said Commcise clients will be able to access unique market benchmarks within the application that is intended to help asset managers demonstrate compliance with evolving regulations and make more informed decisions about their research spending.
Substantive Research customers will also benefit from Euronext and Commcise’s scale, which will enable the company to expand its coverage and product offerings.
The acquisition of Substantive Research is in line with Euronext’s capital allocation policy and is expected to further reinforce its investor services segment with high-quality, recurring revenues.
The transaction will also strengthen the Group’s proximity with the buy-side community.
Camille Beudin, Head of Diversified Services of Euronext, said: “The acquisition of Substantive Research will accelerate the growth of our Investor Services business with leading research and market data benchmarking capabilities and cross-selling potential with Commcise, our commission management and research valuation solutions.”
Meanwhile, Mike Carrodus, Founder and CEO of Substantive Research, emphasised the importance of the acquisition in providing greater market transparency to clients.
