London Stock Exchange Group has agreed to buy Refinitiv in a $27bn deal with a Blackstone-led consortium and Thomas Reuters.
Blackstone has doubled the value of its investment through the deal, a person familiar with matter told the Reuters newswire.
The PE giant’s consortium included the Canada Pension Plan Investment Board and the Singapore state investor GIC.
The deal will see Refinitiv shareholders receive around 37 per cent interest in the LSEG, but hold less than 30 per cent of the total voting rights.
Thomas Reuters confirmed in a sperate statement that it will attain a 15 per cent stake in the London Stock Exchange Group.
Last year the newswire signed a 30-year agreement with Refinitiv which will continue despite the ownership changes.
Refinitiv runs the Eikon series of financial analysis terminals, which are the main rival to Bloomberg terminals.
The combined company will allow LSE to expand its data content, management and distribution capabilities as well as increase its global footprint and range of offerings, the company said in a statement.
Blackstone closed a $20bn deal last year which saw it take a 55 per cent stake in the Thomson Reuters’ financial and risk business, which would become Refinitiv. Reuters maintained a 45 per cent interest following the close of the deal.
Blackstone senior managing director Martin Brand said, “Refinitiv has been an outstanding performer for Blackstone and our partners Thomson Reuters, CPPIB, and GIC.
“We believe the combination announced today creates a strongly positioned leader in financial markets infrastructure, and we are excited about the continued prospects of Blackstone’s investment as a long-term partner of LSEG.”
