The London Stock Exchange Group plc (LSE) on Thursday announced that it will acquire U.S.-based Frank Russell for $2.7 billion. The deal represents the largest acquisition in the LSE's history and will be funded through a $1.6 billion rights issue and the rest through debt financing.
Upon completion of the deal, which still requires approval from both regulators and shareholders, the LSE will become the world's third-largest player in exchange traded funds (ETF) and will compete with market leaders, S&P Dow Jones and MSCI.
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The LSE expects the addition of Frank Russell to deliver an earnings boost within the first year.
CEO of the exchange, Xavier Rolet, commented, "This is a strong strategic acquisition for the group, which creates a highly valuable leading indices business with significant growth potential."
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