StockMarketWire.com - The London Stock Exchange said it had agreed terms to acquire Refinitiv for $27bn. The company also reported a slight uptick in half-yearly profits led by strong performances in its informational services and clearing businesses.

Under the terms of the deal, Refinitiv shareholders were expected to hold a 37% stake in the enlarged group with less than 30% of the total voting rights of LSEG.

Together LSEG and Refinitiv would be the largest listed global financial markets infrastructure provider by revenue, with combined annual revenues of over £6 billion in 2018 and would be well positioned to deliver attractive top line growth over the medium-term., The London Stock Exchange said.

The combined business would target delivery of revenue compound annual growth rate of 5 to 7% over the first three years and a combined adjusted earnings (EBITDA) margin of around 50% in the medium term following completion.

Recurring revenue was expected to increase from approximately 40% for LSEG standalone to around 70% for the combined business based on combined annual revenue for 2018, the company said.

The approval of LSEG shareholders for the deal would be sought at the General Meeting, which would be convened before the end of 2019.

The deal was expected to occur during the second half of 2020, the company added.

The update comes as the company reported a slight uptick in half-yearly profits, led by strong performances in its informational services and clearing businesses.

For the six months to 30 June, profit before tax was rose 1% to £363m as revenue increased 7% to £1,018m

Many parts of the group had delivered good results, with strong contributions in particular from LCH and Information Services, the company said.

Information Services, the group's largest business segment by revenue, delivered a 7% increase in revenue, to £441m.

Post Trade Services - LCH, the group's majority-owned global clearing business, produced a 12% increase in total revenue, to £266m.

The company increased its interim dividend by 17% to 20.1p per share from a year earlier.

Looking ahead, the company said it remained well positioned in an evolving regulatory and macroeconomic environment and we expect to make further progress in H2.

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