London Stock Exchange Group has reportedly struck a $1bn deal to sell a leading wealth technology platform to a consortium of investors.
According to Sky News, LSE is selling a group of assets called BETA+ to Motive Partners and Clearlake Capital Group – the latter of which is part of an ongoing bid for Chelsea Football Club.
Sky cited a source as saying that the deal, which could be announced as early as Monday, comprised assets that were acquired as part of LSEG’s $27bn takeover of Refinitiv last year.
The BETA+ businesses are understood to be non-core to LSEG’s strategy, though the company is expected to form a new long-term strategic partnership with the assets’ new owners.
Sky said it was unclear what LSEG would use the proceeds of the disposal for, but paying down debt and returning cash to shareholders were likely to be high on the list of priorities for chief executive David Schwimmer.
Victoria Scholar, head of investment at Interactive Investor, said the deal could crystalise some value for the LSE from its Refinitiv takeover as the group looks to shed parts of its acquired business, which are non-essential to the deal’s rationale.
“Having already raised its dividend this month, this could provide an opportunity for the LSE to increase its pay out further or carry out a share buyback to return cash to shareholders,” she said.
