London Stock Exchange Group (LSEG) has agreed to acquire financial technology provider Quantile Group.

Quantile, founded in 2015, provides trade compression and risk rebalancing services to banks, hedge funds, and other financial institutions trading Over-the-Counter (OTC) derivatives.

LSEG said the transaction will enable it to expand its range of post-trade risk management solutions and that Quantile will be complementary to LSEG’s existing global OTC derivatives clearing services.

The acquisition is being funded from existing cash resources and credit facilities and is expected to close in 2022, subject to antitrust and other regulatory approvals.

Investment banking advisory firm Evercore is acting as sole financial adviser and sponsor to LSEG in relation to the transaction.

“The acquisition of Quantile builds on the strong growth delivered by LSEG and our post trade division,” said Daniel Maguire, group head, post trade at LSEG and chief executive at LCH Group. “It significantly enhances LSEG’s multi-asset class customer offering across the transaction lifecycle by providing more sophisticated tools and infrastructure for customers to optimise their financial resources and drive greater operational efficiencies in OTC derivatives.”

He added: “I look forward to working with Andy and his team at Quantile to further support innovation for the market and develop our businesses.”

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