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On July 27, the London Stock Exchange Group announced to be in talks to buy the Refinitiv financial data provider for $ 27 billion, including debt.
LSE announced it would issue shares to the owners of Refinitiv, a group of funds controlled by private equity giant Blackstone and Thomson Reuters, owner of Breakingviews. After the transaction, these investors would own approximately 37% of the enlarged capital of LSE, while limiting their voting rights to less than 30%.
LSE said it expects the agreement to achieve annual savings of 350 million pounds a year, within five years of completion.
In 2018, a consortium led by Blackstone acquired a 55% interest in the financial data division of Thomson Reuters, before renaming the Refinitiv business. Last year's business generated revenues of $ 6.3 billion and EBITDA of $ 1.6 billion.
Refinitiv is committed to cost savings of up to $ 650 million per year by the end of 2020. By March, the company had reduced its annual costs by $ 350 million and planned to reduce costs by $ 50 million annually. reach two thirds of the target by the end of 2019.
LSE CEO David Schwimmer will lead the larger company, with President Don Robert retaining the same role.
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