Refinitiv, one of the world’s largest providers of financial markets data and infrastructure, today announces that its shareholders have agreed definitive terms with the London Stock Exchange Group plc (“LSEG”) under which LSEG will acquire Refinitiv in an all share transaction for a total enterprise value of approximately US$27 billion. The full LSEG announcement can be found here.
The transaction will create a leading, UK-headquartered, global financial market infrastructure (FMI) provider with a leading data and analytics business, significant capital market capabilities across multiple asset classes and a broad post-trade offering, well positioned for future growth.
The transaction will result in Refinitiv’s shareholders – a consortium of investment funds affiliated with Blackstone as well as Thomson Reuters – ultimately holding an approximate 37 per cent economic interest in LSEG and less than 30 per cent of the total voting rights of LSEG. Subject to among other considerations, certain regulators not having objections to proposed nominees, Refinitiv shareholders will be entitled to nominate up to three non-executive directors to the LSEG Board, two of whom will be representatives of Blackstone and one a representative of Thomson Reuters.
Refinitiv’s shareholders will have an important investment in the combined business and have agreed to be subject to a lock-up for the first two years following completion of the transaction, expected in the second half of 2020. In each of years three and four following completion, Refinitiv’s shareholders will become entitled to sell one-third of the shares issued to them and the lock-up will terminate on the fourth anniversary of completion.
Refinitiv’s Chief Executive Officer David Craig will continue in his role and join LSEG’s Executive Committee. The combined business will be chaired by LSEG’s Chairman Don Robert and led by David Schwimmer, LSEG’s Chief Executive Officer with David Warren as LSEG’s Chief Financial Officer.
Refinitiv is one of the world’s largest providers of financial markets data and infrastructure, serving over 40,000 institutions in over 190 countries. It provides leading data and insights, trading platforms, and open data and technology platforms that connect a thriving global financial markets community – driving performance in trading, investment, wealth management, regulatory compliance, market data management, enterprise risk and fighting financial crime. For more information visit: www.refinitiv.com