London Stock Exchange Group (LSE) has agreed to acquire rival Turquoise Trading for an undisclosed sum.
London Stock Exchange Group (LSE) has agreed to acquire rival Turquoise Trading for an undisclosed sum.
Under the terms of the deal, LSE will acquire a 60 per cent stake in Turquoise, while the remainder will be retained by existing shareholders including global investment banks UBS, Goldman Sachs and Morgan Stanley. The company will continue to trade under the Turquoise brand.
Turquoise was set up in 2006 and is yet to make a profit. In 2008, the London-based company reported pre-tax losses of £15.7 million.
Xavier Rolet, CEO of LSE, said: ‘The European marketplace for trading securities has scope to become more efficient and to grow significantly in the coming years. Turquoise’s existing pan-European footprint is a strong proposition and together with the introduction of new trading technology… we believe it is now well positioned.’
LSE reported a decrease in revenue of 4 per cent to £310.9 million and pre-tax profits of £79.4 million in the six months ending September. The deal is expected to close by mid-February.
