LSEG Agrees to Buy Acadia to Its Boost Post-Trade Offering PlatoBlockchain Data Intelligence. Vertical Search. Ai.

LSEG Agrees to Buy Acadia to Its Boost Post-Trade Offering

Time Stamp: December 19, 2022 4:32 PM

The London Stock Exchange Group (LSEG), which has had a minority stake in Acadia since 2018, has decided to buy out the US-based risk and collateral management services provider. LSEG disclosed the planned acquisition on Monday in a statement on its website.

The deal comes some days after technology giant Microsoft bought about 4% stake in LSEG and announced a 10-year partnership deal with the leading UK stock exchange operator to provide “next-generation data and analytics and cloud infrastructure solutions.”

However, LSEG said the goal of its planned acquisition of Acadia, whose terms have not been made public, is to boost its multi-asset post-trade offering for the uncleared derivatives industry. According to the exchange, Acadia powers over $1 trillion in collateral exchanges daily.

“With deep domain expertise in margining, collateral and risk management, Acadia is highly complementary to LSEG’s post-trade capabilities. The transaction will strengthen LSEG’s provision of resilient and systemically important financial market infrastructure to our customers,” the stock exchange explained.

LSEG Acquisition a ‘Significant Milestone’ for Acadia

Meanwhile, if the deal is completed, Chris Walsh, Acadia’s CEO, is expected to join the LSEG’s Post Trade Division and report to Daniel Maguire, the stock exchange’s Group Head of Post Trade, LSEG said.

Speaking on the acquisition, Maguire praised Acadia’s “significant efficiencies in risk management, margining and collateral,” adding that he looks forward to working with Walsh and his team “to continue to innovate and drive efficiencies across the derivatives landscape.”

Also speaking, Walsh described the agreed deal as a “significant milestone” for Acadia, adding that the combination of both companies’ capabilities “will result in exciting opportunities for our clients to optimize their post-trade operations more efficiently.” However, the planned acquisition is still subject to regulatory approval.

LSEG’s Acquisition Spree

Throughout this year, LSEG has announced a number of agreed acquisition deals, which is evidence of its strong standing in the global financial market. In May, the stock exchange agreed to take over MayStreet, a market data solution provider.

Earlier in April, the London-based financial services provider also announced its plan to acquire Global Data Consortium, an identity verification data platform, in order to integrate the firm into its Data and Analytics division. In addition, LSEG in February signed a deal to buy out TORA for $325 million.

TORA is a cloud-based technology provider focused on the trading industry. The goal, the stock exchange operator said, is to boost its footprint in the trading and banking solution industry.

The London Stock Exchange Group (LSEG), which has had a minority stake in Acadia since 2018, has decided to buy out the US-based risk and collateral management services provider. LSEG disclosed the planned acquisition on Monday in a statement on its website.

The deal comes some days after technology giant Microsoft bought about 4% stake in LSEG and announced a 10-year partnership deal with the leading UK stock exchange operator to provide “next-generation data and analytics and cloud infrastructure solutions.”

However, LSEG said the goal of its planned acquisition of Acadia, whose terms have not been made public, is to boost its multi-asset post-trade offering for the uncleared derivatives industry. According to the exchange, Acadia powers over $1 trillion in collateral exchanges daily.

“With deep domain expertise in margining, collateral and risk management, Acadia is highly complementary to LSEG’s post-trade capabilities. The transaction will strengthen LSEG’s provision of resilient and systemically important financial market infrastructure to our customers,” the stock exchange explained.

LSEG Acquisition a ‘Significant Milestone’ for Acadia

Meanwhile, if the deal is completed, Chris Walsh, Acadia’s CEO, is expected to join the LSEG’s Post Trade Division and report to Daniel Maguire, the stock exchange’s Group Head of Post Trade, LSEG said.

Speaking on the acquisition, Maguire praised Acadia’s “significant efficiencies in risk management, margining and collateral,” adding that he looks forward to working with Walsh and his team “to continue to innovate and drive efficiencies across the derivatives landscape.”

Also speaking, Walsh described the agreed deal as a “significant milestone” for Acadia, adding that the combination of both companies’ capabilities “will result in exciting opportunities for our clients to optimize their post-trade operations more efficiently.” However, the planned acquisition is still subject to regulatory approval.

LSEG’s Acquisition Spree

Throughout this year, LSEG has announced a number of agreed acquisition deals, which is evidence of its strong standing in the global financial market. In May, the stock exchange agreed to take over MayStreet, a market data solution provider.

Earlier in April, the London-based financial services provider also announced its plan to acquire Global Data Consortium, an identity verification data platform, in order to integrate the firm into its Data and Analytics division. In addition, LSEG in February signed a deal to buy out TORA for $325 million.

TORA is a cloud-based technology provider focused on the trading industry. The goal, the stock exchange operator said, is to boost its footprint in the trading and banking solution industry.

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