Business
LSEG announces investment in Post Trade Solutions
LSEG has announced an investment in its Post Trade Solutions business, with 11 global banks acquiring a 20% stake for £170 million, valuing the business at £850 million. Post Trade Solutions generated £96 million in revenue and £16 million in normalised EBITDA in 2024. As part of the agreement, LSEG will acquire an increased proportion of the revenue surplus from SwapClear, reducing the banks' share to 15% for 2025 and 10% from 2026, extending at 10% until 2045. LSEG will pay £1.15 billion for this change, in two installments, with a possible further payment of up to £200 million if growth targets are met. The amount paid in relation to the Revenue Surplus Share in 2024 was €0.2 billion. The transaction is expected to be 2-3% accretive to AEPS in 2025. Disclaimer*
About this update from London Stock Exchange Group Plc
[{"type":"text","content":"\n\nLSEG announces partnership and investment in Post Trade Solutions\nThe transaction provides enhanced revenue share rights to SwapClear\n \n23 October 2025\nLSEG today announced that 11 leading global banks1 (together, the Investing Banks) have agreed to invest in its Post Trade Solutions business2, taking a 20% stake. The Investing Banks will each become shareholders in Post Trade Solutions, acquiring the stake for aggregate cash consideration of £170 million, valuing the whole of Post Trade Solutions at £850 million. Post Trade Solutions generated revenue of £96 million and normalised EBITDA of £16 million in 2024.\nThe Investing Banks are major customers of LSEG's clearing services and Post Trade Solutions business. As a result, this initiative continues the strong history of strategic partnership with LSEG and market participants, replicating the original LCH model that continues to prove so successful for LCH and its customers.\nAs shareholders in Post Trade Solutions, the Investing Banks will benefit from strategic input into Post Trade Solutions and its future growth. Three directors nominated by the Investing Banks will join the Board of Post Trade Solutions.\nLSEG will also acquire an increased proportion of the revenue surplus3 from the SwapClear business. Previously, the founding members of SwapClear, which include the Investing Banks, were entitled to c.30% of SwapClear's revenue surplus through to 2035 (the Revenue Surplus Share). As a result of this transaction, the Revenue Surplus Share for the SwapClear banks will reduce to 15% for 2025 (applied retroactively to 1 January 2025) and 10% from 2026. The Investing Banks have reaffirmed their commitment to the ongoing successful partnership in SwapClear through an extension of the Revenue Surplus Share at the 10% level from 2035 until 2045.\nThe amount paid in relation to the Revenue Surplus Share in 2024, included in LSEG's cost of sales, was €0.2 billion. LSEG is paying a total cash consideration of £1.15 billion for this change in terms, payable in two instalments in 2025 and 20264. A further payment of up to a maximum of £200 million will be payable should certain future growth targets be met.\nThe transaction will be accretive to the EBITDA margin of the Markets division and LSEG as a whole, and will be approximately 2-3% accretive to AEPS in 2025 with fu...