London Stock Exchange to Acquire Frank Russell for Historic Price

Today the London Stock Exchange Group plc (LSE) 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. The LSE expects the addition of Frank Russell to deliver an earnings boost within the first year. Chief executive officer 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."