Wednesday December 8 2021
News Source: Global Exchanges
Focus: Mergers and Acquisitions
Type: General
Country: UK
On 6th December 2021, London Stock Exchange (LSEG) announced that it has agreed to acquire Quantile Group Limited (Quantile)
Quantile is a leading provider of portfolio, margin and capital optimisation and compression services for the global financial services market. Quantile’s powerful optimisation engine provides advanced trade compression and risk rebalancing services to banks, hedge funds and other financial institutions trading OTC derivatives. Quantile was founded in 2015 and is led by a team of industry experts with significant experience in risk management, quantitative analysis and trading technology.
The Transaction will enable LSEG to expand its range of Post Trade risk management solutions to its customers through trade compression, capital and margin optimisation services. Quantile will be complementary to LSEG’s global OTC Derivatives clearing services, which provide risk management and capital efficiencies to customers. The Transaction furthers LSEG’s strategy of providing customers with a global, multi-asset class financial markets infrastructure operating across the trading ecosystem.
LSEG and Quantile’s services will be available on an Open Access basis that will continue to offer customers the choice of where to clear, compress and optimise their trading activity. Following the Transaction, Quantile will remain a standalone entity within LSEG’s Post Trade division, reporting to Daniel Maguire, LSEG’s Group Head of Post Trade.
LSEG has agreed to pay a maximum aggregate consideration of up to £274 million (subject to customary adjustments) to Quantile’s shareholders.
As the Transaction is classified as a smaller related party transaction under LR 11.1.10, a sponsor’s written confirmation has been obtained stating that the Transaction is fair and reasonable as far as the Company’s shareholders are concerned.
The acquisition is being funded from existing cash resources and credit facilities and is expected to close in 2022, subject to antitrust and other regulatory approvals.
Evercore is acting as sole financial adviser and sponsor to LSEG in relation to the Transaction.
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