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LSEG to buy Citi’s fixed income analytics and index businesses for $685m

BBR Staff Writer Published 31 May 2017

Citi has agreed to divest its fixed income analytics and index businesses to London Stock Exchange Group (LSEG) for $685m.

Under the deal, LSEG will acquire Citi’s fixed income analytics platform and The Yield Book, as well as Citi Fixed Income Indices that includes World Government Bond Index (WGBI).

With a client base of around 350 institutions across the globe, Citi’s fixed income indices are used to analyze a range of fixed income instruments such as mortgage, government, corporate and derivative securities.

The acquisition will allow LSEG to improve the data and analytics capabilities of its Information Services division (ISD) and its FTSE Russell franchise.

According to Citi, the LSEG will optimize the outcome for the fixed income analytics and index businesses for key stakeholders such as employees, clients and shareholders.

Subject to regulatory clearance and other customary closing conditions, the deal is expected to complete in the second-half of this year.

Citi investor services global head Okan Pekin said: “As a result, these businesses will become part of a global financial market infrastructure group with a demonstrated track record of delivering high-quality index and analytics services to its clients.

“We look forward to a long-term, productive partnership between London Stock Exchange Group and Citi. This divestiture is consistent with Citi's strategy of focusing on its core businesses.”

FTSE Russell CEO Mark Makepeace said: “The acquisition of The Yield Book and Citi Fixed Income Indices supports the continued strong growth and development of London Stock Exchange Group’s Information Services division.

Citi offers a range of financial products and services for the consumers, corporations, governments and institutions.

Image: Citigroup headquarters in Lower Manhattan. Photo: courtesy of Beyond My Ken.