The Gateway to Algorithmic and Automated Trading

LSEG to acquire data and analytics provider Mergent

First Published 21st November 2016

Acquisition supports FTSE Russell's core index offering, especially in the creation of factor-based, passive investment products.

Mark Makepeace, FTSE Russell

Mark Makepeace, FTSE Russell

London Stock Exchange Group has signed an agreement to acquire 100 per cent of the issued share capital of Mergent's holding company. The Mergent business will form part of LSEG's Information Services Division, which includes FTSE Russell, a provider of indexes, and a range of real time and reference data products, such as SEDOL, UnaVista and RNS.

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 range of indexes.

The 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 indexes, which include stocks with specific characteristics, are an important and innovative new tool for examining markets and creating investable products. LSEG and FTSE Russell also intend to expand and align Mergent's activities to enable them to meet the demands of its existing client base.

Mark Makepeace, Group Director of Information Services and CEO of FTSE Russell said: "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."

Completion of the Transaction, which is expected to occur by 31 January 2017, 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.