London Stock Exchange Group (LSEG) has agreed to take full ownership of risk management firm Acadia to bolster its multi-asset post trade offering for the uncleared derivatives segment.
The financial terms of the deal were not disclosed.
Founded in 2009, Acadia caters to the global derivatives community with automated uncleared margin processing and integrated risk and optimisation services.
The company’s risk and margining products cover all over-the-counter (OTC) derivative asset classes and offer direct connectivity to more than 2,000 market players.
Acadia is said to facilitate more than $1 trillion in collateral exchanges daily.
Acadia CEO Chris Walsh 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 optimise their post trade operations more efficiently.”
Since 2018, LSEG has owned a minority stake in Acadia and is said to have assisted the latter to drive considerably growth in recent years.
According to LSEG, with its deep domain know-how in margining, collateral and risk management, Acadia will be highly complementary to its own post trade offerings.
The proposed deal is anticipated to boost LSEG’s ability to offer resilient and systemically crucial financial market infrastructure to customers.
LCH Group CEO and LSEG post trade group head Daniel Maguire 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.”
The closing of the deal is subject to regulatory approval.
Barclays is serving as the sole financial adviser to LSEG while Broadhaven is the exclusive financial adviser to Acadia.
Recently, LSEG entered into a partnership with Microsoft on next-gen data and analytics solutions as part of a 10-year commercial agreement.
