May 30 London Stock Exchange (LSE) has
agreed to buy Citigroup's fixed-income analytics platform
and index business for $685 million in cash, the companies said
LSE, which has said it would explore investments to drive
growth after the collapse of its proposed merger with Deutsche
Boerse, said the deal would boost the data and
analytics capabilities of its information services and FTSE
Russell franchise businesses, including an increase in benchmark
assets under management to about $15 trillion.
The deal, which is subject to regulatory clearance and is
expected to close in the second half of this year, will add $30
million to LSE's revenue over the first three years after
completion and bring $18 million of cost savings.
LSE expects its core profit margin to rise to at least 50
percent within three years of the deal's completion, the company
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by