- Mergent Inc. is a leading provider of business and financial information on public and private companies
- Acquisition supports FTSE Russell’s core index offering, especially in the creation of factor-based, passive investment products
- Adds to LSEG’s data and analytics capabilities
- Strong investor demand for underlying benchmark data and analysis tools
London Stock Exchange Group (LSEG) today announces that it has signed an agreement to acquire 100 per cent of the issued share capital of Mergent’s holding company (the “Transaction”). The Mergent business will form part of LSEG’s Information Services Division, which includes FTSE Russell, a global leader in indexes, and a range of real time and reference data products, such as SEDOL, UnaVista and RNS. Completion of the Transaction, which is expected to occur by 31 January 2017, is conditional on, among other things, expiration or termination of the waiting period under the US Hart-Scott-Rodino Act. The terms of the Transaction have not been disclosed.
For over 100 years, Mergent Inc. has been a leading provider of business and financial information on public and private companies globally. With advanced data collection services, cloud-based applications, desktop analytics and print products, Mergent provides data and analysis including top down economic and demographic information, detailed equity and debt fundamental analysis and research services. These solutions, which include data on 385,000 Corporate Bonds, 3.6 million US Municipal Bonds and 250 million public and private companies, are delivered to more than 4,000 customers worldwide including investment firms, brokerage houses and law firms.
The acquisition of Mergent will support the growth of FTSE Russell’s core index offering, supplying underlying data and analytics for the creation of a wide range of indexes. The significant growth of passive investment is increasing the demand for smart-beta and customised indexes, which incorporates factors such as volatility, quality and liquidity into index creation. Multi-factor indexes, which include stocks with specific characteristics, are an important and innovative new tool for examining markets and creating investable products and FTSE Russell is well-positioned to meet this growing customer demand. LSEG and FTSE Russell also intend to expand and align Mergent’s activities to enable them to meet the growing demands of its existing client base.
Mark Makepeace, Group Director of Information Services and CEO of FTSE Russell said:
“The acquisition of Mergent supports the continuing strong growth of FTSE Russell and LSEG’s data services. Mergent will broaden our range of data services, research and analytics to meet the increasing demands of our clients for benchmarks and related data and analytic services.”
Jonathan Worrall, CEO of Mergent Inc. said:
“Mergent is delighted to become part of FTSE Russell and the wider London Stock Exchange Group. Mergent has a long history of developing innovative new products for its clients, delivering comprehensive financial data on public and private companies around the world. The transaction provides Mergent with a fantastic opportunity to develop our global product offering as part of a leading markets infrastructure group.”
Lazard Middle Market acted as financial advisor and K&L Gates LLP acted as legal advisor to Mergent Inc. Sagent Advisors acted as financial advisor and Freshfields Bruckhaus Deringer US LLP acted as legal advisor to London Stock Exchange Group.
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For further information:
Lucie Holloway / Ed Clark +44 (0)20 7797 1222
Tim Benedict +1 212 314 1220
Notes to editors:
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) is an international markets infrastructure business. Its diversified global business focuses on capital formation, intellectual property and risk and balance sheet management. LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. The Group can trace its history back to 1698.
The Group operates a broad range of international equity, ETF, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (Europe's leading fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants, including retail investors, institutions and SMEs unrivalled access to Europe’s capital markets. The Group also plays a vital economic and social role, enabling companies to access funds for growth and development.
Through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with approximately $10 trillion benchmarked to its indexes. The Group also provides customers with an extensive range of real time and reference data products, including SEDOL, UnaVista, XTF and RNS.
Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of LCH, a multi-asset global CCP operator, LSEG owns CC&G, the Italian clearing house; Monte Titoli, a leading European custody and settlement business; and globeSettle, the Group’s CSD based in Luxembourg.
LSEG is a leading developer and operator of high performance technology solutions, including trading, market surveillance and post trade systems for over 40 organisations and exchanges, including the Group’s own markets. Additional services include network connectivity, hosting and quality assurance testing. MillenniumIT, GATElab and Exactpro are among the Group’s technology companies.
Headquartered in the United Kingdom, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 3,500 people.
Further information on London Stock Exchange Group can be found at www.lseg.com
About FTSE Russell:
FTSE Russell is a leading global provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. More than $15 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by the London Stock Exchange Group.
For more information, visit www.ftserussell.com.
© 2018 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.
All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this communication should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.