The London Stock Exchange Group (LSEG), which has had a minority stake in Acadia since 2018, has decided to buy out the US-based risk and collateral management services provider. LSEG disclosed the planned acquisition on Monday in a statement on its website.

@LSEGplc to acquire Acadia. The acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term furthers LSEG’s strategy to enhance and grow its multi-asset Post Trade offering for the uncleared derivatives space. Read the press release: https://t.co/sLvYdxMdAX pic.twitter.com/bbN2avvlbH

— LSEG (London Stock Exchange Group) (@LSEGplc) December 19, 2022

LSEG Acquisition of Acadia Focusing on Post-Trade Capabilities

The deal comes some days after technology giant Microsoft bought about 4% stake in LSEG and announced a 10-year partnership deal with the leading UK stock exchange operator to provide "next-generation data and analytics and cloud infrastructure solutions.”

However, LSEG said the goal of its planned acquisition of Acadia, whose terms have not been made public, is to boost its multi-asset post-trade offering for the uncleared derivatives industry. According to the exchange, Acadia powers over $1 trillion in collateral exchanges daily.

“With deep domain expertise in margining, collateral and risk management, Acadia is highly complementary to LSEG’s post-trade capabilities. The transaction will strengthen LSEG’s provision of resilient and systemically important financial market infrastructure to our customers,” the stock exchange explained.

LSEG Acquisition a 'Significant Milestone' for Acadia

Meanwhile, if the deal is completed, Chris Walsh, Acadia’s CEO, is expected to join the LSEG’s Post Trade Division and report to Daniel Maguire, the stock exchange’s Group Head of Post Trade, LSEG expressed.

Speaking on the acquisition, Maguire praised Acadia’s “significant efficiencies in risk management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, margining and collateral,” adding that he looks forward to working with Walsh and his team “to continue to innovate and drive efficiencies across the derivatives landscape.”

Also speaking, Walsh described the agreed deal as a “significant milestone” for Acadia, adding that the combination of both companies' capabilities “will result in exciting opportunities for our clients to optimize their post-trade operations more efficiently.” However, the planned acquisition is still subject to regulatory approval.

LSEG’s Acquisition Spree

Throughout this year, LSEG has announced a number of agreed acquisition deals, which is evidence of its strong standing in the global financial market. In May, the stock exchange agreed to take over MayStreet, a market data solution provider.

Earlier in April, the London-based financial services provider announced its plan to acquire Global Data Consortium, an identity verification data platform, in order to integrate the firm into its Data and Analytics division. In addition, LSEG signed a deal to buy out TORA in February for $325 million.

TORA is a cloud-based technology provider focused on the trading industry. The goal, the stock exchange operator said, is to boost its footprint in the trading and banking solution industry.