London Stock Exchange Group has signed an agreement to acquire Mergent's holding company. The Mergent business will form part of LSEG's information services division, which includes FTSE Russell, a global leader in indices, and a range of real time and reference data products, such as SEDOL, UnaVista and RNS.
Completion of the Transaction, which is expected to occur by 31 January, is conditional on, among other things, expiration or termination of the waiting period under the US Hart-Scott-Rodino Act. The terms of the transaction have not been disclosed.
Mergent Inc has been a leading provider of business and financial information on public and private companies globally for more than 100 years.
With advanced data collection services, cloud-based applications, desktop analytics and print products, Mergent provides data and analysis including top down economic and demographic information, detailed equity and debt fundamental analysis and research services.
These solutions, which include data on 385,000 corporate bonds, 3.6 million US municipal bonds and 250 million public and private companies, are delivered to more than 4,000 customers worldwide including investment firms, brokerage houses and law firms. LSEG says the acquisition of Mergent will support the growth of FTSE Russell's core index offering, supplying underlying data and analytics for the creation of a wide range of indexes. The significant growth of passive investment is increasing the demand for smart-beta and customised indexes, which incorporates factors such as volatility, quality and liquidity into index creation.
Multi-factor indices, which include stocks with specific characteristics, are an important and innovative new tool for examining markets and creating investable products and FTSE Russell is well-positioned to meet this growing customer demand.
LSEG and FTSE Russell also intend to expand and align Mergent's activities to enable them to meet the growing demands of its existing client base. Group director of information services and chief executive of FTSE Russell, Mark Makepeace, said: "The acquisition of Mergent supports the continuing strong growth of FTSE Russell and LSEG's data services. Mergent will broaden our range of data services, research and analytics to meet the increasing demands of our clients for benchmarks and related data and analytic services."
At 1:15pm: (LON:LSE) London Stock Exchange Group PLC share price was -23p at 2853p