IHS Markit Boosts French Presence with DeriveXperts Acquisition

Gianluca Biagini, managing director for derivatives data and valuation services at IHS Markit, says the acquisition is “highly strategic,” as DeriveXperts provides valuation services for over-the-counter derivatives and other complex financial securities, which he says will complement and enhance IHS Markit’s existing derivatives data and valuations offerings, particularly for equity-linked products, an area where he says there is growth across all of the company’s customer segments.

“This acquisition will give us the opportunity to serve clients, especially for the French-speaking part of Europe, where DeriveXperts has very well-established presence and expertise. We’re going to slightly increase our coverage, as well as be able to engage and expand business there,” Biagini says.

Founded in 2003, DeriveXperts specializes in daily and monthly computations of hard-to-value assets, such as equity derivatives, FX derivatives, interest rate derivatives and structured notes.

The acquisition will add to IHS Markit’s current team of 100 in Paris, and will target structured notes issued by banks and distributed through insurance firms, mostly via life insurance policies. “That is a market which is really growing and where local presence, local understanding and local relationships are necessary,” Biagini says, adding that the strategy is not limited to France but includes Belgium, Luxembourg, and the French-speaking regions of Switzerland. “The French market is significant and quite sophisticated, and that’s why it’s an area for us for growth.”

The deal also creates opportunities for IHS Markit’s data business: “We’re already seeing some synergies in terms of clients requesting coverage of certain instruments, particularly on complex structured notes,” an area where Biagini says the firm is keen to leverage DeriveXperts existing presence.

He says the acquisition was not motivated by Brexit, but should politics require it, “our presence in France can be leveraged.”

Biagini says the firm anticipates no disruptions in current data services, but adds that over time he expects the two entities to fully merge, although that may “take up to a year.”

“IHS Markit’s growth strategy has always been organic, but also looking at smart acquisitions when they are available. We will continue to execute in that manner,” he says.