LSE completes $685 million bond indices deal with Citi

Deal to acquire Citi’s fixed income indices and the Yield Book announced in May this year has closed.

The London Stock Exchange (LSE) has completed its acquisition of Citgroup’s fixed income indices and The Yield Book for $685 million. 

First announced in May, the deal is set to provide the exchange operator with revenues and cost synergies of up to $30 million and $18 million respectively.

It will also expand FTSE Russell’s index service to include fixed income and analytics to clients in North America, Europe and Asia. 

Mark Makepeace, group director of Information Services and CEO of FTSE Russell, described the deal as a significant step for the business.  

He said it will also allow the exchange to provide its clients with “broader multi-asset capabilities and a deeper data and analytics offering”. 

Okan Pekin, global head of investor services and DCC at Citi, added: “As part of the transaction, Citi will remain a long term partner, collaborating with LSE on future development and support of certain models.”

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

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