London Stock Exchange acquires Quantile

London Stock Exchange Group (LSEG) said on Monday it had acquired Quantile Group to expand its range of post-trade risk management solutions.

Quantile is a provider of portfolio, margin and capital optimisation services for banks, hedge funds and financial institutions trading derivatives.

LSEG has agreed to pay up to £274 million ($362 million) to Quantile’s shareholders.

The acquisition will be a standalone entity within the company’s post-trade business which provides clearing services for over-the-counter derivatives.

Quantile was founded in 2015 and is chaired by Stephen O’Connor, the former Morgan Stanley banker who used to chair the International Swaps and Derivatives Association. Until August, Stephen was an independent director of LSEG.

LSEG owns finanical data and analytics provider Refinitiv, that was carved out from Thomson Reuters, parent of Reuters News, in 2018 by a consortium led by Blackstone (BX.N) before being bought by LSEG in January 2021.

Thomson Reuters now holds a minority stake in LSEG and Refinitiv pays Thomson Reuters for news it distributes.

The transaction is being funded from existing cash resources and is expected to close in 2022, subject to regulatory approvals. Evercore was sole financial adviser and sponsor to LSEG in the deal.