Deutsche Börse Group has invested $15 million for a minority stake in MerQube, a US-based index technology firm that designs and calculates rules-based investment strategies and passive solutions, the company said on Monday.
The exchange group is co-investing alongside private markets asset manager 7RIDGE. Deutsche Börse Group said the deal strengthens its position in the index business by adding MerQube’s capabilities to its established STOXX index unit, part of ISS STOXX.
MerQube, founded in 2019, operates a cloud-native SaaS platform focused on customized complex indices, including sell-side indices used as underlyings for index derivatives and structured products. The firm also covers defined outcome strategies, volatility management, and real-time and intraday index calculation.
Deutsche Börse Group is buying into a technology platform that can build and maintain bespoke indices faster than traditional methods, without needing to develop every capability in-house. MerQube’s strong presence in the Americas adds geographic reach beyond Deutsche Börse Group’s existing footprint.
“The demand for customization, flexibility, and speed-to-market in index-linked investing has been accelerating,” said Christian Kromann, member of the Executive Board of Deutsche Börse Group. “MerQube’s cutting-edge technology and innovative approach to indexing respond to this demand.”
MerQube CEO Vinit Srivastava said the investment would help the firm “further our leadership in indexing for derivatives-based investing.”
MerQube raised $22 million in a Series B round in 2023, led by Intel Capital with participation from Citi, JP Morgan, Laurion Capital Management and UBS.
The $15 million ticket falls within the typical range for Deutsche Börse Group’s corporate venture arm, DB1 Ventures, which targets minority stakes in fintech firms core or adjacent to the group’s strategy.
