London Stock Exchange Group (LSEG) agreed to divest BETA, Maxit and Digital Investor (collectively BETA+) to affiliates of Clearlake Capital Group and Motive Partners for a total cash consideration of $1,100 million. The transaction is expected to complete in H2 2022.
BETA+ provides back office processing solutions to the wealth management industry, including securities processing and tax reporting. In the year ended 31 December 2021 it had revenues of approximately $300 million, primarily linked to US markets.
In addition, LSEG announces that it has entered into a new long-term strategic partnership for data, content and tools with BETA+ and portfolio companies owned by Motive and Clearlake. The partnership will provide LSEG with new, recurring revenues at attractive growth rates through access to new client segments.
Andrea Remyn Stone, group head of Data and Analytics at LSEG, said in a statement: “The divestment of BETA+ will focus LSEG’s Wealth business on meeting our customers’ needs in high growth areas. This includes the provision of data, analytics and workflow tools where we have deep capabilities and where LSEG is driving innovation.”
Behdad Eghbali, co-founder and managing partner and James Pade, partner, at Clearlake, said in a joint statement: “BETA+ has established a strong position in the self-clearing technology space and broader wealth management ecosystem with a reputation for meeting the unique needs of global financial institutions and their clients. We look forward to partnering with Motive, the BETA+ team and LSEG as the company continues to provide best-in-class solutions to its blue-chip customer base.”