LONDON (Reuters) -The London Inventory Exchange Team reported on Monday it will market its prosperity administration technological know-how operations BETA+ for $1.1 billion to affiliates of Clearlake Capital Group and Motive Associates to lower the exchange’s leverage.
BETA+, which consists of Maxit and Electronic Investor, delivers again-office processing to the prosperity management marketplace, which include securities processing and tax reporting. It had income of about $300 million previous yr, generally joined to U.S. marketplaces.
LSEG said it expects to hand a “important proportion” of the net proceeds to shareholders by way of a buyback, which would possible commence in the third quarter.
“In addition, LSEG announces that it has entered into a new extensive-time period strategic partnership for knowledge, articles and tools with BETA+ and portfolio firms owned by Motive and Clearlake,” LSEG said in a assertion.
The partnership will supply LSEG with new, recurring income at interesting advancement fees via accessibility to new consumer segments, the exchange explained.
Shares in LSEG, which stated leverage would be reduce, have been down .2% at 7,942 pence at 1200 GMT.
“The wealth management field continues to show chances, bolstered by tailwinds throughout the spectrum like a major motion in technological know-how modernization, market consolidation, boosts in retail investing, and democratization of the cash markets,” Clearlake and Motive stated in a assertion.
Thomson Reuters, dad or mum of Reuters News, holds a minority stake in LSEG, whose info and analytics arm Refinitiv pays Thomson Reuters for news it distributes.
(Reporting by Huw Jones Editing by Kirsten Donovan and Emelia Sithole-Matarise)
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