London Stock Exchange Group plc (LSEG) announced that it has agreed to acquire Acadia, a provider of automated uncleared margin processing and integrated risk and optimization services for the global derivatives community.
The acquisition furthers LSEG’s strategy “to enhance and grow its multi-asset Post Trade offering for the uncleared derivatives space.”
Acadia was “established in 2009 and provides risk management, margining and collateral services to global financial institutions for the uncleared derivatives markets.” Acadia’s risk and margining products “span all OTC derivative asset classes and provide direct connectivity to over 2,000 market participants.” The company “enables over $1 trillion in collateral exchanges daily.”
LSEG has “held a minority stake in Acadia since 2018 and has supported the business in driving substantial growth in recent years.”
With deep domain expertise in margining, collateral and risk management, Acadia is highly complementary “to LSEG’s Post Trade capabilities.” The transaction “will strengthen LSEG’s provision of resilient and systemically important financial market infrastructure to our customers.”
LSEG and Acadia share “a commitment to an open model, giving customers a choice as to how they process trades.” Following completion, Acadia will be “part of LSEG’s Post Trade division, with CEO, Chris Walsh reporting to Daniel Maguire, Group Head of Post Trade, LSEG.”
Daniel Maguire, Group Head, Post Trade, LSEG & CEO, LCH Group said:
“The acquisition of Acadia is part of LSEG’s strategy to enhance and grow our multi-asset Post Trade offering for the uncleared derivatives space. Our customers are looking for more ways to optimise their financial resources, and Acadia’s services enable significant efficiencies in risk management, margining and collateral. I look forward to working with Chris and the team at Acadia to continue to innovate and drive efficiencies across the derivatives landscape.”
Chris Walsh, CEO, Acadia said:
“This transaction is a significant milestone for our business, and we are delighted to be joining LSEG. They have a strong track record serving the derivatives marketplace and combining this with Acadia’s expertise in risk mitigation, margining and collateral will result in exciting opportunities for our clients to optimize their post trade operations more efficiently.”
The transaction is “subject to regulatory approval. The terms of the transaction have not been disclosed.”
Barclays is acting “as sole financial adviser” to LSEG and Broadhaven is “acting as sole financial adviser” to Acadia in relation to the transaction.
As noted in the update, LSEG (London Stock Exchange Group) is “more than a diversified global financial markets infrastructure and data business.”
They are “dedicated partners with an open approach and a commitment to excellence in delivering the services our customers expect from us.”
With extensive experience, deep knowledge and worldwide presence across financial markets, they “enable businesses and economies around the world to fund innovation, manage risk and create jobs.”
It’s how they’ve contributed “to supporting the financial stability and growth of communities and economies globally for more than 300 years.”