January 30, 2019
London Stock Exchange Group plc announces acquisition of 4.92% stake in Euroclear Holding SA/NV
This announcement contains inside information
London Stock Exchange Group plc ("LSEG") announces it will acquire an aggregate 4.92% stake in Euroclear’s share capital for €278.5 million (£241.9 million)1.
Euroclear is a leading financial market infrastructure company, providing settlement, custody and collateral management services across Europe with €28.2tn2 in assets under custody.
LSEG’s minority investment is expected to strengthen LSEG and Euroclear’s existing operational and commercial relationship and provide further opportunities for the companies to deliver benefits to their customers through commercial collaboration and product development. Following LSEG’s minority investment in Euroclear, LSEG and Euroclear anticipate that a representative of LSEG will join the Board of Euroclear Holding SA/NV.
The transaction will be funded from existing cash and debt facilities and it is expected that the Group’s adjusted net debt to EBITDA will remain within its target range of 1-2 times following completion. The transaction is expected to be earnings accretive.
David Schwimmer, CEO of LSEG, commented:
“We are delighted to become a shareholder of Euroclear, with which we have a long-standing operational and commercial relationship. Both LSEG and Euroclear share the same open access philosophy and a customer partnership approach which is central to our businesses. We look forward to working with Euroclear to drive continued innovation and efficiencies for the benefit of our customers and the wider market.”
Note:
1 At GBP:Euro FX rate of €1.15
2 As per year end 2018 https://www.euroclear.com/about/en/business/Keymetrics.html
The person responsible for this announcement on behalf of LSEG is Lisa Condron, the Group Company Secretary of LSEG.
About LSEG
LSEG (London Stock Exchange Group) is a leading global financial markets infrastructure and data provider, playing a vital social and economic role in the world’s financial system.
With our open approach, trusted expertise and global scale, we enable the sustainable growth and stability of our customers and their communities. We are dedicated partners with extensive experience, deep knowledge and a worldwide presence in data and analytics; indices; capital formation; and trade execution, clearing and risk management across multiple asset classes.
LSEG is headquartered in the United Kingdom, with significant operations in over 60 countries across EMEA, North America, Latin America and Asia Pacific. We employ 25,000 people globally, more than half located in Asia Pacific. LSEG’s ticker symbol is LSEG.
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