21st Mar 2022 12:20
(Alliance News) - London Stock Exchange Group PLC on Monday confirmed it has agreed to divest Beta+ to affiliates of Clearlake Capital Group LP and Motive Partners for USD1.1 billion in cash.
Earlier on Monday, Sky News reported that LSEG was in talk for selling the wealth technology platform to a consortium of investors.
The London Stock Exchange operator added that the transaction price is before tax and separation costs. The deal is expected to be completed in the second half of this year.
However, it is still subject to the fulfilment of conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customer consents, LSEG said.
Beta+, or Beta, Maxit & Digital Investor, provides back-office processing solutions to the wealth management industry.
LSEG said that it plans to return a "significant" proportion of the net proceeds from the sale to shareholders, through a buyback, while still continuing to support organic and inorganic growth opportunities.
The firm also entered into a new long-term strategic partnership for data, content and tools with Beta+ and portfolio companies owned by New York-based investment firm Motive and Santa Monica, California-based Clearlake.
LSEG said it expects the partnership to provide new, recurring revenue at attractive growth rates through access to new client segments.
"The divestment of Beta+ will focus LSEG's Wealth business on meeting our customers' needs in high growth areas. This includes the provision of data, analytics and workflow tools where we have deep capabilities and where LSEG is driving innovation, "said Andrea Remyn Stone, group head of Data & Analytics.
"The partnership with Beta+ under its new owners offers a platform for further revenue growth in content and data while ensuring continuity for customers under a new owner focused on this segment of the market."
Shares were marginally lower at 7,956.00 pence each on Monday midday in London.
By Abby Amoakuh; [email protected]
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