S&P Global and CME Group Finalize $3.1 Billion Sale of OSTTRA to KKR

S&P Global and CME Group Sell OSTTRA to KKR for $3.1 Billion

In a significant move for the financial services sector, S&P Global and CME Group have entered into a definitive agreement to transfer ownership of OSTTRA, a prominent provider of post-trade solutions, to KKR for a total enterprise value of $3.1 billion. This decision marks a pivotal shift for OSTTRA, which was initially established in 2021 through a collaboration between both firms, representing a 50/50 joint venture aimed at enhancing post-trade capabilities in the global over-the-counter (OTC) market.

The agreement, which involves customary adjustments to the purchase price, is set to equally benefit both S&P Global and CME Group as they divest from their joint investment in OSTTRA. This transaction is expected to close in the latter half of 2025, contingent upon regulatory approvals and other standard closing conditions.

A New Era for OSTTRA

OSTTRA has distinguished itself as an essential infrastructure provider within the financial ecosystem, delivering a wide array of post-trade offerings across multiple asset classes, including interest rates, foreign exchange (FX), credit, and equity. The firm’s comprehensive suite of solutions supports banks, broker-dealers, asset managers, and various market participants through critical processes such as trade lifecycle management and optimization.

As the firm continues to evolve, the existing management team, which includes co-CEOs Guy Rowcliffe and John Stewart, will maintain their leadership roles post-transaction. They expressed optimism about the partnership with KKR, a well-respected global investment firm. With KKR’s significant resources and expertise, OSTTRA aims to broaden its technological investments and continue innovating within the post-trade space, ultimately enhancing its customer service and market presence.

Commitment to Growth and Innovation

Both Rowcliffe and Stewart have articulated their enthusiasm for the collaboration with KKR, highlighting the firm’s impressive track record and commitment to growth. "Together, we look forward to delivering even greater value to our customers and helping them navigate the ever-evolving OTC landscape," the co-CEOs stated in a joint announcement.

KKR's Webster Chua remarked on the company's longstanding admiration for OSTTRA's operational capabilities, emphasizing the strong foundation that exists for future growth and innovation. Chua indicated that KKR's partnership will leverage its extensive experience in the tech-enabled and financial services sectors to drive OSTTRA's ongoing success.

Looking Ahead

CME Group’s Chairman and CEO Terry Duffy noted the significant progress OSTTRA has made under their joint venture and expressed confidence that KKR’s involvement will further propel the business forward. He highlighted the importance of OSTTRA's solutions in enhancing efficiencies for clients as the post-trade marketplace continues to evolve.

Furthermore, KKR plans to implement a broad-based equity ownership program aimed at engaging OSTTRA’s nearly 1,500 employees. This initiative is rooted in the belief that employee ownership fosters stronger, more resilient companies. Since 2011, KKR has helped over 150,000 employees at its portfolio companies gain equity ownership, reinforcing its commitment to rewarding team members and driving company success.

The financial details surrounding the transaction, including terms for the equity ownership program, are not disclosed as of yet. As the financial landscape grows more complex, KKR's backing places OSTTRA in a strong position to address contemporary post-trade challenges while preparing for future operational demands.

Conclusion

The acquisition of OSTTRA marks a significant step for KKR as it endeavors to extend its influence within the post-trade solutions arena while simultaneously offering valuable support to existing client relationships. This evolution is not just about ownership change but also signals a commitment to enhancing service delivery for all of OSTTRA’s stakeholders, ultimately positioning the company to navigate and lead in an increasingly sophisticated financial market.