London Stock Exchange Group (LSEG) has agreed to purchase Quantile Group for a maximum aggregate consideration of up to £274m.
The transaction is expected to close in 2022, subject to regulatory approvals.
Founded in 2015, Quantile offers portfolio, margin, and capital optimisation and compression services for the global financial services market.
Its optimisation engine provides trade compression and risk rebalancing services to hedge funds, banks, and other financial institutions trading OTC derivatives.
The acquisition is expected to help LSEG offer a range of post trade risk management solutions to its customers through services such as trade compression, capital, and margin optimisation.
Additionally, Quantile is anticipated to bolster LSEG’s global OTC Derivatives clearing services, which offers risk management and capital efficiencies to customers.
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By GlobalDataUnder the terms of the deal, Quantile will continue to be a standalone entity within LSEG’s Post Trade division. It will be managed by LSEG Group head of Post Trade Daniel Maguire.
Commenting on the deal, Maguire said: “The acquisition of Quantile builds on the strong growth delivered by LSEG and our Post Trade division.
“It significantly enhances LSEG’s multi-asset class customer offering across the transaction lifecycle by providing more sophisticated tools and infrastructure for customers to optimise their financial resources and drive greater operational efficiencies in OTC derivatives.”
Quantile CEO Andrew Williams added: “Quantile and LSEG share many of the same values, including a culture of innovation and a focus on delivering market leading services.
“I look forward to working with Daniel and the team to accelerate our growth and to continue to deliver efficiencies and portfolio optimisation for our customers and the wider OTC derivatives marketplace.”