London Stock Exchange agrees to buy $27bn Refinitiv

London Stock Exchange Group plc (LSEG) said on Thursday it agreed to buy financial information firm Refinitiv in an all-share $27 billion deal that would transform LSEG into a market data and analytics giant.

The Refinitiv deal would turn LSEG into a major distributor of financial market data as well as creator, positioning it as a competitor to Bloomberg.

Refinitiv’s Eikon terminals on trading floors challenge those provided by Bloomberg.

The proposed deal, announced 10 months after a Blackstone-led consortium completed a leveraged buyout of Refinitiv from Thomson Reuters, is a fast turnaround for the private equity group which could double the value of its investment.

The transaction would result in Refinitiv Shareholders ultimately holding a 37% economic interest in LSEG and less than 30% of the total voting rights of LSEG.

Blackstone’s consortium includes an affiliate of Canada Pension Plan Investment Board (CPPIB), an affiliate of GIC and “certain co-investors.”

“The transaction brings together two highly complementary businesses to create a leading, UK headquartered, global financial markets infrastructure provider with a leading data and analytics business, significant capital markets capabilities across multiple asset classes, and a broad post-trade offering, well positioned for future growth in a fast evolving landscape,” said LSEG.

LSEG CEO David Schwimmer said: “With the acquisition of Refinitiv, we will transform our position as a leading global financial markets infrastructure group.

“Refinitiv brings highly complementary capabilities in data and capital markets, as well as deep customer relationships across a truly global business.

“We share a commitment to open access and to partnering with our customers to deliver innovative solutions across the financial markets value chain.

“Our shareholders and customers will benefit from attractive top line growth prospects, substantial cost and revenue synergies, as well as ongoing efficiency initiatives, and this transaction will ensure we are well positioned for future growth in an evolving landscape.”

Martin Brand, senior managing director at Blackstone, said: “Refinitiv has been an outstanding performer for Blackstone and our partners Thomson Reuters, CPPIB, and GIC.

“We believe the combination announced today creates a strongly positioned leader in financial markets infrastructure, and we are excited about the continued prospects of Blackstone’s investment as a long-term partner of LSEG.”

Refinitiv CEO David Craig, said: “LSEG’s business is highly complementary with Refinitiv’s leading global data platform, transaction and distribution network.

“Our aim is to capture the opportunity of data which we believe is driving unprecedented change in the global financial community.

“The combined business will allow us to better serve customers across all regions.

“Our two companies both have strong heritages, a shared approach to open access and partnership, and we are excited to work with the LSEG team to create a leading financial markets infrastructure group and to continue to invest in our business.”