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London Stock Exchange Group (LSEG) has struck a deal to sell a minority stake in its Post Trade Solutions subsidiary to a consortium of banks. JP Morgan And Barclays.
In an announcement accompanying its latest financial results, LSEG said it would sell a 20% stake in the division to a group of 11 global banks.
The companies will pay a total of £170 million to invest in the Post Trade Solutions business, which provides risk management services in the obscure derivatives market.
This would value the business at around £850 million, which made revenues of £96 million and earnings of £16 million last year.
The banks involved in purchasing stakes in the business are all important clients of the division and LSEG’s clearing services.
It came as LSEG revealed profit margins were on track to “top” its guidance for the year following positive trading last quarter.
Total revenue rose 6.4% in the quarter to the end of September, as it was boosted by strong growth in its risk intelligence arm, which grew 13.9%.
Meanwhile, its FTSE Russell business saw a 9.3% rise and data and analytics rose 4.9%.
The company also lauded “continued strong” growth in its subscription businesses.
David SchwimmerThe chief executive of LSEG said: “We continued our strong momentum in the third quarter, driving growth across all business areas.
“We are also improving profitability and now expect EBITDA (earnings before interest, taxes, depreciation and amortization) margins to top guidance for 2025.
“We have significantly accelerated our strategic progress over the past few months, enhancing the long-term growth potential of the business: We have launched a range of innovative new products for customers positioning LSEG as the partner of choice in AI. Microsoft And Databricks.”
shares The company rose 6% in early trading on the FTSE 100.