LONDON/NEW YORK: The London Stock Exchange Group Plc said on Friday it was in discussions to acquire financial data analytics provider Refinitiv Holdings Ltd for $27 billion, including debt.
The deal would come less than a year after buyout firm Blackstone Group Inc acquired a majority stake in Refinitiv from Thomson Reuters Corp, valuing the company at the time at $20 billion including debt.
LSE said it would pay for the deal with newly issued LSE shares as currency, turning Refinitiv’s existing investors into LSE shareholders who would own about 37 per cent of the combined company and hold less than 30 per cent of the voting rights.
Thomson Reuters, a professional information company that is the parent of Reuters News, currently holds a 45 per cent stake in Refinitiv. It confirmed the negotiations in a statement and said it will own a 15 per cent stake in LSE if the deal is completed.
Based on the valuation the deal would assign to Refinitiv, Blackstone will have roughly doubled the value of its original investment in the company, according to a person familiar with the matter, who requested anonymity because the private equity firm keeps that number confidential.
Refinitiv had $12.2 billion in debt as of the end of December as a result of its leveraged buyout by Blackstone, which LSE would assume under the proposed deal.
LSE and Thomson Reuters both cautioned that there is no certainty that discussions between the parties will progress or that a transaction will be forthcoming. A person familiar with the matter said on Friday that if the negotiations conclude successfully, a deal could be agreed next week.
Refinitiv did not immediately respond to a request for comment, while Blackstone declined to comment. Refinitiv bonds rallied on the prospect of a deal. — Reuters
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