London Stock Exchange Group said Wednesday it would acquire a 4.92% stake in Euroclear for €278.5m.
Euroclear, a leading financial market infrastructure company, provided settlement, custody and collateral management services across Europe with €28.2tn in assets under custody.
The stake in Euroclear was expected to strengthen the company's and Euroclear's existing operational and commercial relationship and provide further opportunities for the companies to deliver benefits to their customers through commercial collaboration and product development.
Following the company's minority investment in Euroclear, both companies anticipated that a representative of London Stock Exchange Group would join the board of Euroclear.
The transaction was also expected to be earnings accretive, the company said.