London Stock Exchange Group said Thursday it struck a deal with 11 global banks, including J.P. Morgan and Bank of America, to sell a 20% stake in its Post Trade Solutions business for 170 million British Pounds.
The transaction values the unit, which provides risk management services for the uncleared derivatives market, at 850 million British Pounds, according to the company.
In a parallel move, LSEG will pay 1.15 billion British Pounds to increase its share of revenues from its SwapClear interest rate swaps clearing service.
"This deal strengthens our partnership and strategic alignment with key customers, while delivering attractive margin and earnings enhancement," CEO David Schwimmer said in a statement.
The company said the transaction is expected to boost adjusted earnings per share by 2-3% in 2025.
The announcement came as LSEG reported a 6.4% rise in third-quarter total income, on an organic constant currency basis, to 2.22 billion British Pounds.
The company raised its full-year 2025 forecast for a key profitability metric, now expecting its EBITDA margin to increase by about 100 basis points, excluding a further boost from the SwapClear deal.
LSEG also announced an additional 1 billion British Pounds share buyback program to be completed by February 2026.
More from this issuer
Related coverage
London Stock Exchange Group has entered a strategic partnership with Nasdaq to distribute private markets intelligence through its Workspace and Datafeeds platforms, the company said Thursday.
London Stock Exchange Group on Tuesday said it will commence a share buyback program to repurchase up to 1 billion British Pounds of its stock.
London Stock Exchange Group announced a collaboration with artificial intelligence company Anthropic to provide its financial data to Anthropic's enterprise customers.
London Stock Exchange Group said on Thursday that a consortium of 11 global banks will invest 170 million British Pounds for a 20% stake in its Post Trade Solutions business.