London Stock Exchange Group has moved to acquire Quantile Group in a deal worth a potential £274 million.

Quantile, based in London, provides portfolio, margin and capital optimisation and compression services for the global financial services market. 

Its optimisation engine provides advanced trade compression and risk rebalancing services to banks, hedge funds and other financial institutions trading OTC derivatives. 

Founded in 2015, it is led by a team of industry experts with significant experience in risk management, quantitative analysis and trading technology.

LSEG, which is itself listed on the London Stock Exchange, said the transaction will be complementary to its global OTC derivatives clearing services, which provide risk management and capital efficiencies to customers. 

Quantile will remain a standalone entity within LSEG’s post trade division, reporting to Daniel Maguire, LSEG’s group head of post trade.

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“The acquisition of Quantile builds on the strong growth delivered by LSEG and our post trade division,” said Maguire. 

“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. 

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

Andrew Williams, CEO at Quantile, said: “I am delighted with this agreement to become part of LSEG. Quantile and LSEG share many of the same values, including a culture of innovation and a focus on delivering market leading services. 

“I look forward to working with Daniel and the team to accelerate our growth and to continue to deliver efficiencies and portfolio optimisation for our customers and the wider OTC derivatives marketplace.”

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.