LSEG to acquire Citi’s fixed income analytics platform and index businesses

London Stock Exchange Group (LSEG) has agreed to buy Citi’s fixed income analytics platform, The Yield Book.

LSEG to acquire Citi’s fixed income analytics platform and index businesses

London Stock Exchange Group (LSEG) has agreed to buy Citi’s fixed income analytics platform, The Yield Book, and Citi Fixed Income Indices business for $685m in cash.

The Yield Book offers analytical services to assess fixed income instruments such as government, agency, corporate, high yield, emerging market, mortgages, ABS, CMBS, CMOs, and derivative securities. Citi Fixed Income Indices are used by financial institutions in the creation of ETFs, structured products and swaps.

“The acquisition represents a significant opportunity for LSEG to enhance the data and analytics capabilities of its Information Services division (“ISD“) and its FTSE Russell franchise bringing, in particular, an increase in benchmark AUM to around $15 trillion, enhanced analytics capabilities and a broader multi-asset customer servicing capability,” LSEG said.

LSEG would finance the deal using its existing cash resources and credit facilities. Existing leadership team and employees of The Yield Book will migrate to LSEG as part of the deal.

The deal is expected to be completed in the second-half of 2017, subject to regulatory nod. LSEG expects revenue and cost synergies of $30m and $18m, respectively, over the first three years after completion of the transaction.

The Yield Book and Citi Fixed Income Indices global head Richard Burns said: “This partnership will help accelerate the growth of our business. As part of London Stock Exchange Group, our clients will benefit from continued investment and strengthening of our analytics platform, together with a broader range of indexing capabilities.”