, Singapore

SGX buys 93% stake in index provider Scientific Beta for $280m

This will expand its Data, Connectivity and Indices business.

Singapore Exchange (SGX) is acquiring a 93% stake in independent index provider Scientific Beta for $280m (EUR186m) in cash, according to a news release. The proposed acquisition will be funded through external borrowings.

Singapore Holding of the EDHEC Endowment Fund (SHEEF), which is owned by the endowment fund established by EDHEC Business School and its alumni, will continue to hold a 7% stake in Scientific Beta after the acquisition. SHEEF will also retain a seat on the board of and remain as a partner of SGX.

Established by EDHEC-Risk Institute (ERI Asia), an affiliate of EDHEC Business School, Singapore-based Scientific Beta provides smart beta indices to its clients. The company specialises in smart beta strategies, with expertise in factor-based and risk-managed solutions. 

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