S&P Global and CME Group announced the signing of a definitive agreement to sell OSTTRA, a provider of post-trade solutions for the global OTC market, to investment funds managed by KKR. The terms of the deal for OSTTRA equaled total enterprise value at $3.1 billion, subject to customary purchase price adjustments. This amount will be divided evenly between S&P Global and CME Group pursuant to their 50/50 joint venture.
Launched in 2021 as a joint venture between CME Group and S&P Global, OSTTRA serves the global financial ecosystem with a comprehensive suite of critical post-trade offerings across interest rates, FX, credit and equity asset classes. And OSTTRA offers end-to-end connectivity and workflow solutions to banks, broker-dealers, asset managers, and other market participants across trade processing, trade lifecycle, and optimization.
OSTTRA’s management team, led by co-CEOs Guy Rowcliffe and John Stewart, will continue to lead the company in their current roles. KKR will support OSTTRA’s customer-centric growth and role as a critical market infrastructure provider by increasing OSTTRA’s investments in technology and innovation across its leading post-trade solutions platform.
KKR is making an investment in OSTTRA primarily through its North American private equity strategy. Following the close of the dealing, KKR will support OSTTRA in creating a broad-based equity ownership program to provide all of the company’s nearly 1,500 employees the opportunity to participate in the benefits of ownership.
This strategy is based on a belief that team member engagement through ownership is a key driver in building stronger companies. And since 2011, more than 60 KKR portfolio companies have awarded billions of dollars of total equity value to over 150,000 non-senior management employees.
The deal is expected to close in the second half of 2025, subject to customary closing conditions and receipt of required regulatory approvals.
Advisors: Barclays and Davis Polk served as financial and legal advisors, respectively, to S&P Global. And Citi and Skadden served as financial and legal advisors, respectively, to CME Group. Goldman Sachs and Simpson Thacher & Bartlett served as financial and legal advisors, respectively, to KKR.
KEY QUOTES:
“We are incredibly grateful for our partnership with CME Group and S&P Global over the past several years and delighted to have KKR’s backing as we embark on this exciting new chapter for OSTTRA. With KKR’s support, we will further accelerate our strategic initiatives to enhance our market-leading post-trade solutions, drive innovation, and expand our global footprint. Together, we look forward to delivering even greater value to our customers and helping them navigate the ever-evolving OTC landscape.”
- Guy Rowcliffe and John Stewart, co-CEOs of OSTTRA
“We have long admired OSTTRA for its mission-critical solutions, deep customer relationships, and strong market position, which we believe provide a great foundation for future growth. We look forward to working with the OSTTRA team and leveraging our experience in the tech-enabled and financial services sectors to help the company further innovate and drive value for its customers.”
- Webster Chua, Partner at KKR
“OSTTRA has generated significant growth over the past several years, and we are pleased with the role our joint venture played in driving the company forward. Looking ahead, as the post-trade marketplace continues to evolve, we are confident that KKR will further scale this business and extend the important efficiencies that OSTTRA delivers to clients.”
- CME Group Chairman and Chief Executive Officer Terry Duffy
“We’re thrilled about this next chapter for OSTTRA, which, together with KKR, is ideally positioned to tackle today’s complex post-trade challenges and proactively meet future operational demands. This transaction reflects S&P Global’s continued commitment to active portfolio optimization in support of our strategy and to fuel future growth.”
- John Barneson, Chairman of the Board of OSTTRA and Head of Enterprise Solutions at S&P Global Market Intelligence
