LSE to buy Citi's fixed income analytics platform and index family

London Stock Exchange Group has struck a deal to buy a fixed income analytics platform and family of fixed income indices from US bank Citigroup's for $685m (£535m) cash.

Looking to strengthen its information services division, the LSE Group said buying The Yield Book and Citi Fixed Income Indices would improve its fixed-income range and offer deeper data and analytics services.

LSEG has already identified $30m of extra revenue by creating new products and another $18m of costs it can take out through operational efficiencies from operational overlaps.

Mark Makepeace, director of information Services and CEO of FTSE Russell, said: "The acquisition represents a significant step for FTSE Russell to acquire a world-class fixed income analytics and index business, enhancing our ability to provide customers with broader multi-asset capabilities and a deeper data and analytics offering.

"I very much look forward to working together with the team at Yield Book and Citi Fixed Income Indices as we develop our businesses over the coming months. We are also delighted that Citi will remain a significant customer of the Yield Book and a long term partner."

The acquisition increases the benchmark assets under management to around $15trn as well as adding new analytics capabilities and enlarges FTSE Russell's fixed income index family with a recognised global brand for both equity and fixed income in North America, Asia and Europe.

LSEG bought the Russell indices business in 2014 to add to its FTSE indices and enlarged the information services business with the addition of data firm Mergent in 2016.

The Yield Book also helps to strengthen LSEG's presence in the United States and has strong links with the asset owner community in North America and Asia, LSEG said, as well as widening information services' global distribution capabilities.