Singapore Exchange (SGX) is scaling up its Data, Connectivity and Indices (DCI) business through the acquisition of a 93% stake in Scientific Beta for EUR186 million in cash.
Set up by ERI Asia, Singapore-headquartered Scientific Beta is an independent index provider specialising in smart beta strategies.
Some 60 asset owners and asset managers use its indices to track or benchmark their smart beta investments. Nearly US$55 billion in assets owned by global institutions track the firm's indices.
Loh Boon Chye, CEO, SGX, says: "Scientific Beta brings a highly regarded research pedigree in the rapidly growing smart beta space, along with a strong suite of high profile clients in the US and Europe.
"Besides being complementary to our existing SGX Index Edge thematic and custom index capabilities, we also see new product opportunities based on Scientific Beta’s indices."