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NEW YORK - S&P Global and CME Group have reached a definitive agreement to sell OSTTRA, a top provider of post-trade solutions for the global over-the-counter (OTC) market, to investment funds managed by KKR, a global investment firm. The transaction values OSTTRA at an enterprise value of $3.1 billion, with the purchase price subject to customary adjustments. The proceeds will be split equally between S&P Global and CME Group, reflecting their joint venture partnership.
OSTTRA, formed in 2021, delivers a range of post-trade services across various asset classes, including interest rates, FX, credit, and equities. The company offers trade processing, lifecycle management, and optimization solutions to banks, broker-dealers, asset managers, and other market participants. Its management team, led by co-CEOs Guy Rowcliffe and John Stewart, is set to continue at the helm with KKR’s support. For detailed analysis of S&P Global’s financial health, which InvestingPro rates as "GOOD" with strong cash flow metrics, subscribers can access the comprehensive Pro Research Report, available for over 1,400 US stocks.
KKR plans to bolster OSTTRA’s growth and market infrastructure role by enhancing investments in technology and innovation. Guy Rowcliffe and John Stewart expressed their gratitude for the partnership with CME Group and S&P Global and their enthusiasm for the support from KKR in advancing OSTTRA’s strategic initiatives and global presence.
Webster Chua, Partner at KKR, commended OSTTRA’s solutions and customer relationships, indicating a strong foundation for future expansion. KKR’s investment comes primarily from its North American private equity strategy and includes plans to establish a broad-based equity ownership program for OSTTRA’s nearly 1,500 employees, fostering engagement and company growth.
CME Group CEO Terry Duffy and S&P Global Market Intelligence’s John Barneson both acknowledged OSTTRA’s growth under their joint venture and expressed confidence in KKR’s ability to further scale the business.
The transaction is anticipated to conclude in the second half of 2025, pending customary closing conditions and regulatory approvals. Financial advisement for the deal was provided by Barclays and Citi, with legal advisement from Davis Polk and Skadden for S&P Global and CME Group, respectively. KKR was advised by Goldman Sachs and Simpson Thacher & Bartlett.
This news is based on a press release statement.
In other recent news, S&P Global has announced plans to revise its macroeconomic forecasts following the introduction of new trade tariffs by the U.S. administration. This revision could potentially impact credit ratings, with initial assumptions suggesting an increase in U.S. inflation and a slight decrease in GDP growth. Meanwhile, S&P Global Market Intelligence has launched its Global Entity Linking and ESG Data Management Services through Snowflake’s AI Data Cloud, aiming to enhance data integration and analysis capabilities for clients. This initiative is expected to improve access to comprehensive data insights across various platforms.
On the financial analysis front, Mizuho Securities has initiated coverage on S&P Global with an Outperform rating and a price target of $599, citing the company’s strong business model and potential profitability from technological investments. RBC Capital Markets also reiterated an Outperform rating with a $620 price target, highlighting S&P Global’s strong organic growth and solid financial guidance for the upcoming fiscal year. Additionally, Stifel has raised its price target for S&P Global to $629, maintaining a Buy rating due to the company’s robust performance in its Ratings segment and positive trends in debt issuance.
These developments reflect a mix of strategic initiatives and positive analyst outlooks for S&P Global, indicating potential growth and stability despite broader economic uncertainties.
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