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Deutsche Boerse to acquire Axioma for $850 million

A Deutsche Borse AG plaque sits outside the Frankfurt Stock Exchange in Frankfurt, Germany, on Monday, July 4, 2016.

Deutsche Boerse has agreed to acquire risk solutions provider Axioma for $850 million in an all-cash deal, both firms announced in a joint news release.

Axioma will be combined with Deutsche Boerse's €2.6 billion ($2.9 billion) STOXX and DAX index businesses to form a new index and portfolio and risk analytics company.

"This transaction is a step change for our pretrading business and fully in line with our Roadmap 2020 strategy, which besides organic growth builds on programmatic M&A and new technologies," Deutsche Boerse CEO Theodor Weimer said in the release. "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."

As part of the transaction, private equity firm General Atlantic will invest about $715 million in the new company, which will be used to finance the acquisition of Axioma.