London Stock Exchange Group buys Citigroup's Yield Book and fixed-income indices for $685m

William Turvill
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The LSE said it would be on the lookout for deals after the breakdown of its Deutsche Boerse mega-merger (Source: Getty)

The London Stock Exchange Group has agreed a $685m (£534m) to buy two businesses from Citigroup.

The LSE has acquired the Yield Book, a fixed-income analytics service, and its fixed-income indices, including the World Government Bond Index.

The cash deal will see the businesses join the group’s information services division and enhance its FTSE Russell offering.

The deal, subject to regulatory clearance, is expected to close in the second half of this year.

Read more: London Stock Exchange boosts information business with another deal

The acquisition follows the group’s acquisitions of the Russell indices for £1.6bn in 2014 and US-based Mergent in November last year.

Citi said the businesses, which it decided to dispose of following a strategic review, have a client base of more than 350 institutions. The LSE said the deal would mean assets under management using its indices will hit $15 trillion.

“The acquisition of the Yield Book and Citi fixed income indices supports the continued strong growth and development of London Stock Exchange Group’s information services division,” said Mark Makepeace, who is the group’s director of information services and chief executive of FTSE Russell.

“The acquisition represents a significant step for FTSE Russell to acquire a world-class fixed income analytics and index business, enhancing our ability to provide customers with broader multi-asset capabilities and a deeper data and analytics offering.”

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The LSE said it would be on the look-out for deals in April, shortly after the collapse of its mega-merger with Deutsche Boerse.

The group said the latest acquisitions would create revenue of $30m and cost savings of $18m.

Barclays was financial adviser to the London Stock Exchange Group, while Freshfields Bruckhaus Deringer worked on the legal side. Citi’s own Institutional Clients Group advised the bank on the deal.

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