The London Stock Exchange Group has agreed to buy data provider Refinitiv for $27bn, sealing a deal that will turn it into a global markets and information powerhouse to rival Michael Bloomberg’s financial data empire. The chief executive of the LSE said he was confident the business would meet the high expectations set by investors, who have sent shares in the company up 24 per cent since last weekend. “We have a lot of confidence in our ability to generate the targeted growth rates of this business . . . and in the importance of data in financial markets and capital markets,” said David Schwimmer, an American who took over the LSE after leaving Goldman Sachs last year. By acquiring Refinitiv, which is best known for its Eikon desktop terminals, the LSE completes a multiyear effort to become less dependent on transaction-based revenues and will pick up a series of financial data assets that will further reduce its reliance on its UK and European business.
The London Stock Exchange Group could rebrand itself as International Data Inc. In a decade, the company has gone from a local equities market to global information and services business. A deal to buy Citi’s bond index and analytics platform represents another bite of the cherry. Amid the seemingly unstoppable popularity of data-driven investment, the $685m (£530m) cash deal makes sense. Unlike LSE’s failed merger with Deutsche Börse, the purchase is unlikely to draw political heat.