LSEG Acquires Refinitiv to Boost Financial Services

LSEG's acquisition of Refinitiv has marked a significant milestone in the financial services industry. This deal was announced on January 13, 2021.

The acquisition is expected to bring together LSEG's expertise in exchange and post-trade services with Refinitiv's data and analytics capabilities. This combination will enable LSEG to provide a more comprehensive suite of financial services to its clients.

The deal is valued at $27 billion, with LSEG paying $17 billion upfront and up to $10 billion in potential earn-outs.

The London Stock Exchange Acquisition is a significant deal that has been in the making for almost two years. LSEG completed its $27 billion acquisition of Refinitiv, a data and analytics giant, on January 29, 2020.

The deal was initially expected to close in the second half of 2020, but the European Commission launched an investigation, delaying the process. LSEG agreed to sell its Borsa Italiana business and MTS bond trading platform to Euronext, which sealed the deal.

This acquisition marks a major milestone in LSEG's history, according to David Schwimmer, CEO of LSEG. He welcomed the new Refinitiv colleagues and board directors to the company, emphasizing their shared commitment to an open access philosophy.

Refinitiv's Eikon division, which sells financial data terminals, will now be part of LSEG. This move will put LSEG in competition with giants like Bloomberg L.P. in the market data industry.

The acquisition creates a global leader in financial data and infrastructure, with LSEG now owning a 37% economic interest and 29% voting interest in the company.

The London Stock Exchange Group (LSEG) has completed its transformational acquisition of Refinitiv for $27 billion. This deal marks a significant milestone in LSEG's history.

LSEG has been working towards closing the deal for almost a year and a half, after confirming plans to acquire Refinitiv in August 2019. The transaction was initially expected to be completed in the second half of 2020.

Take a look at this: Lseg Refinitiv

The European Commission launched an investigation into the deal, raising concerns that the combination could stifle competition in bond trading and market data. This led to a standstill in the deal for several months.

LSEG had to sell off its Borsa Italiana business and MTS bond trading platform as a condition of the acquisition. Pan-European exchange Euronext agreed to acquire Borsa Italiana, including MTS, for €4.3 billion in October.

Refinitiv will offer LSEG a route into FX markets for the first time and broaden the exchange’s global footprint in terms of coverage in emerging and growth markets. This is a significant expansion for LSEG.

The London Stock Exchange Group (LSEG) has made a significant move in the financial industry by acquiring Refinitiv, a global financial data analysis and trading platform provider. This deal was announced in July 2019 and valued at approximately $27 billion.

The acquisition brings together two complementary businesses with a shared commitment to an "open access" philosophy. LSEG is a global financial markets infrastructure business, while Refinitiv provides data, insight, and analytics to over 40,000 institutions worldwide.

The deal is expected to achieve £350 million ($425.3 million) in cost synergies after five years. This will help LSEG shift away from erratic trading revenue streams and towards fee-based activity.

The acquisition has created a global leader in financial data and infrastructure, with Refinitiv's CEO joining LSEG's executive committee. The firm's owners will hold a 37% stake in LSEG and less than 30% of total LSEG voting rights.

Here are the key facts about the deal:

LSEG's acquisition of Refinitiv has marked an important milestone in the company's history, with a shared commitment to an open access philosophy. This deal will help LSEG deliver benefits to customers, including access to data, trading tools, analytics, and risk management across the financial markets.

LSEG's acquisition of Refinitiv is expected to generate significant revenue growth. The combined entity will have a significant presence in the financial data and analytics market.

LSEG's purchase price of $27 billion is a significant investment in the financial data and analytics space. This acquisition is expected to be completed in the first half of 2021.

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The combined entity will have a strong presence in the Eikon platform, which will provide a comprehensive range of financial data and analytics tools to customers. This will enable customers to access a vast amount of financial data and analytics insights.

The acquisition is expected to generate significant synergies, with estimated annual cost savings of $500 million. This will enable LSEG to invest in new technologies and expand its product offerings.

The combined entity will have a strong presence in the financial data and analytics market, with a significant presence in the Eikon platform. This will provide customers with access to a vast amount of financial data and analytics insights.

The London Stock Exchange Group has made a huge acquisition, buying Refinitiv for about $27 billion, including debt.

This deal will put the London Stock Exchange Group in direct competition with giants like Bloomberg L.P.

The acquisition will give the London Stock Exchange Group control of Refinitiv's Eikon division, which sells terminals that allow customers to pull up an array of financial data and exchange messages with others.

Market data has emerged as a big avenue for growth in the trading industry, with exchange operators in the US, like Intercontinental Exchange, now relying on it for a significant source of sales.

Revenues from market data now rival those of traditional stock market services, making it a crucial aspect of the industry.

The London Stock Exchange Group will be competing with other major exchanges, including the New York Stock Exchange and Nasdaq, which have also been looking to increase their market data sales.

Some exchanges have been accused of excessively raising prices for market data, with the Securities and Exchange Commission denying requests from the New York Stock Exchange and Nasdaq to raise fees on some sets of that information.

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