The London Stock Exchange Group is selling its wealth management technology unit BETA+ for $1.1B to cut the exchange’s leverage, according to a report by Reuters on Monday.
- BETA+ provides back-office processing to the wealth management industry, including securities processing and tax reporting. The firm had revenue of nearly $300 million last year, linked to US markets.
- LSEG stated that it expects to transfer a significant portion of the net proceeds to shareholders via a buyback that would likely start in Q3.
- LSEG further announced a new long-term strategic partnership for data, content, and tools with BETA+ and affiliates owned by Motive and Clearlake.
The partnership will provide LSEG with recurring revenue at attractive growth rates via access to new customer segments. LSEG: LON is down -1.53%