London Stock Exchange Group sells BETA+ in $1.1bn deal
London Stock Exchange Group (LSEG) has agreed to sell BETA, Maxit and Digital Investor (collectively known as BETA+) to Clearlake Capital and Motive Partners for $1.1 billion.
BETA+ provides back-office processing solutions to the wealth management industry, including securities processing, custody, clearing, asset servicing and tax reporting.
LSEG says BETA+ generated around $300 million in revenue over 2021.
Along with the sale, LSEG has also agreed to a “long-term strategic partnership” with Clearlake and Motive to provide content, data and tools to BETA+ and the firms’ other portfolio companies.
Speaking on the deal, Andrea Remyn Stone, group head data and analytics at LSEG, says: “The divestment of BETA+ will focus LSEG’s Wealth business on meeting our customers’ needs in high growth areas.
“The partnership with BETA+ under its new owners offers a platform for further revenue growth in content and data while ensuring continuity for customers under a new owner focused on this segment of the market.”
The deal is expected to be completed by H2 2022 subject to customary closing conditions and regulatory approvals.
The sale comes just a month after LSEG acquired fintech TORA for $325 million. Founded in 2004, California-based TORA offers cloud-based trading technology solutions.
The group also picked up Quantile Technologies, a provider of portfolio, margin and capital optimisation and compression services for the global financial services market, in December last year.
Meanwhile, Motive sold its stake in Global Partners, an Ireland-based provider of stock plan management software, to JP Morgan last week.