KKR, a prominent global investment firm, has finalized the acquisition of OSTTRA, a provider renowned for its post-trade solutions within the global over-the-counter (OTC) market. The transaction, which carries a total enterprise value of $3.1 billion, involved purchasing OSTTRA from leading financial services companies S&P Global and CME Group.
Established in 2021 through a partnership between CME Group and S&P Global, OSTTRA plays a vital role in the global financial ecosystem. The company offers an extensive array of essential post-trade services that cater to various asset classes, including interest rates, foreign exchange (FX), credit, and equity. OSTTRA enables banks, broker-dealers, asset managers, and other market players to efficiently manage trade processing, lifecycle, and optimization through its end-to-end connectivity and workflow solutions.
The management team at OSTTRA will continue under the leadership of Guy Rowcliffe and John Stewart. Their existing expertise will be complemented by KKR’s strategic investment, focusing on enhancing customer-centric growth. The firm intends to bolster OSTTRA’s investments in technology and innovation to expand its suite of post-trade solutions.
Additionally, KKR plans to foster an equity ownership program designed to give the nearly 1,500 employees of OSTTRA the chance to share in the company’s success through ownership benefits. This initiative underscores KKR’s commitment to creating a strong company culture centered on collaboration and shared prosperity.
In terms of advisory roles during the acquisition process, Goldman Sachs & Co. LLC and BofA Securities acted as financial and legal advisors to KKR, while Barclays provided financial advice to S&P Global. Citi took on the financial advisory role for CME Group, with legal support from Davis Polk for S&P Global and Skadden for CME Group.
This acquisition is expected to augment OSTTRA’s capabilities in the post-trade arena, making it a key player in delivering innovative solutions that meet the evolving needs of the financial market landscape. Through this strategic move, KKR aims to leverage OSTTRA’s established position as a trusted market infrastructure provider, ultimately enhancing its service offerings and market reach.