The London Stock Exchange Group (LSEG) is divesting from a portion of its wealthtech and advisor technology holdings.
In a Monday announcement, the group said it was selling a bundle of software labeled "BETA+" to private equity firms Clearlake Capital Group and Motive Partners for $1.1 billion in cash.
BETA+ includes several holdings. One is BETA, a securities processing, custody, clearing and asset servicing platform. Another holding, Maxit, is software for cost- and tax-basis reporting. And Digital Investor offers front-end client solutions.
Clearlake Capital and Motive Partners have also entered a long-term strategic agreement with the London Stock Exchange Group, which will continue to provide content, data and tools to BETA+ and the private equity firms’ other portfolio companies.
In their own announcement, Clearlake and Motive said they intend to pursue a wealth tech “buy and build” strategy that includes building out platform infrastructure and using proprietary expertise to augment BETA+ technology and bring it to new segments of the wealth management market—something similar to what they are doing with their continuing build-out of InvestCloud.
The London Stock Exchange Group deal is anticipated to close in the second half of 2022. Additional details were not released by the transaction’s participants.