LSE to acquire bond indices from Citi for $685 million

Addition of indices to bolster information services business and FTSE Russell at the London Stock Exchange.

The London Stock Exchange (LSE) is to acquire The Yield Book and Citi Fixed Income Indices from Citigroup for a cash consideration of $685 million.

The deal – which includes the World Government Bond Index – is part of the exchange operator’s plan to expand its FTSE Russell franchise and data and analytics business.

It will allow FTSE Russell to offer fixed income indices and analytics to clients for both equity and fixed income in North America, Asia and Europe. 

LSE said the acquisition also provides revenue and cost synergies of $30 million and $18 million respectively through new product opportunities. 

Mark Makepeace, CEO of FTSE Russell, explained the acquisition supports the growth of the information services business at the LSE.

“The acquisition represents a significant step for FTSE Russell to acquire a world-class fixed income analytics and index business, enhancing our ability to provide customers with broader multi-asset capabilities and a deeper data and analytics offering,” he said.

Citi will work with the exchange to collaborate on future development of the indices and will remain a customer and partner of The Yield Book.

The LSE said the acquisition is being funded from existing cash resources and credit facilities and is expected to close in the second half of this year.