SHARES in London Stock Exchange Group (LSEG) hovered around one per cent up yesterday, after the bourse said it has agreed to buy Quantile Group, in a bid to strengthen the risk management solutions it offers traders.
In a statement released yesterday, the UK'sstock exchange said it would pay as much as £274m for Quantile, in an acquisition it is funding from existing cash holdings and credit facilities.
Quantile provides banks, hedge funds and other financial firms with tools that help optimise the size and risk of their derivatives portfolios, as well as offering services to manage their complexity and costs.
It's chaired by Stephen O'Connor, who co-founded it six years ago. O'Connor is also a director at London's stock exchange, and up until August was a senior independent director on LSEG's board.
Owing to his considerable stake in Quantile, which filings reveal is between 25 and 50 per cent, he is set for a bumper payout from the takeover.
The deal is expected to close next year, subject to regulatory and antitrust approvals.
It comes after LSEG recently said in its third quarter results that it was on track to make cost savings from its integration of the data platform Refinitiv, which it acquired in January in a $27bn deal.
The group's shares have been trading 17 per cent down since they slumped at the beginning of March, as investors' doubts rose about when the costs of the Refinitiv deal would pay off.
(c) 2021 City A.M., source Newspaper