The London Stock Exchange Group (LSEG) said on Friday that it was talks with a consortium to acquire global financial data analytics provider Refinitiv for an enterprise value of approximately $27 billion.

The consortium includes certain investment funds affiliated with Blackstone as well as Thomson Reuters, LSEG added on its statement.

Under the key headline terms it is expected that LSEG would acquire Refinitiv with new LSEG shares to be issued as consideration in full for Refinitiv’s equity value, after adjusting for Refinitiv’s net debt and other adjustments.

The parties anticipate that the transaction would result in the Refinitiv Shareholders holding an approximately 37 per cent stake in the enlarged group and less than 30 per cent of the total voting rights of LSEG.

Together LSEG and Refinitiv would be the largest listed global financial markets infrastructure provider by revenue, with combined annual revenues of over £6 billion ($7.4 billion) in 2018 and would be well positioned to deliver attractive top line growth over the medium-term.

In addition, LSEG believes that annual run-rate cost synergies in excess of £350 million would be deliverable in the five years after completion and that the transaction would deliver strong adjusted earnings per share accretion in the first full year after completion.

The parties are in advanced discussions regarding board membership, governance and other relationship agreement terms including lock-up provisions, which reflect a long-term partnership. Should the transaction proceed, the Refinitiv shareholders intend to be supportive long-term shareholders in LSEG, the statement said.

Under the transaction terms, LSEG would continue to be chaired by Don Robert and led by David Schwimmer, chief executive officer, with David Warren as chief financial officer. – TradeArabia News Service