LSEG has formed a strategic partnership with eleven global banks, acquiring a 20% stake in its Post Trade Solutions business for £170 million, aimed at enhancing operational efficiencies in the clearing services market.

Target Information

The London Stock Exchange Group (LSEG) has announced a strategic alignment with eleven prominent global banks, collectively known as the Investing Banks. These institutions are set to acquire a 20% equity stake in LSEG’s Post Trade Solutions business for a total cash investment of £170 million, valuing the entire division at £850 million. This partnership not only enhances LSEG's operational capabilities but also reinforces its existing relationships with key market participants.

Post Trade Solutions reported a revenue of £96 million and a normalized EBITDA of £16 million for 2024, demonstrating its strong financial performance. The acquisition will allow the Investing Banks to participate in strategic decision-making within Post Trade Solutions, ensuring that their interests are aligned with LSEG's objectives moving forward.

Industry Overview

The financial services industry, particularly in the UK, has witnessed significant transformations in recent years, largely driven by advancements in technology and a heightened focus on risk management. The