Commenting on today's announcement Mark Makepeace, CEO of FTSE & LSEG Director of Information Services, said: "The fixed income market represents a significant growth opportunity for FTSE. In partnering with TMX Datalinx we can quickly create the scale, quality of operation and global distribution necessary to be a significant player in this rapidly evolving part of the index industry. To accelerate our expansion into North America, a key growth market for us, FTSE will be establishing an office in Toronto."
Eric Sinclair, President TMX Datalinx and Group Head of Information Services, TMX Group added: "This transaction provides TMX Datalinx with a new global presence in the fixed income index business. By partnering with FTSE, we will grow the business globally, while continuing to serve our existing Canadian clients with the excellent quality index suite they trust and rely upon."
Demand for fixed income indices continues to grow rapidly driven by the need for multi-sourced prices, high governance standards and low cost strategies. FTSE TMX Debt Capital Markets will use the power of PC-Bond's fixed income capabilities and methodology to offer the global financial and capital markets community a suite of proven and valuable fixed income indices and analytics tools and to use this as a platform for future expansion.
In addition to holding a 25 per cent interest in the joint venture, TMX Group will receive C$112.2 million ( £72.2 million), subject to adjustments, which will be funded from existing LSEG cash resources. The transaction will be slightly dilutive to earnings per share for TMX Group in 2013. The business, which will be jointly headquartered in London and Toronto, employs nine people and had combined pro forma revenues of C$21.3 million ( £13.7 million) in 2012.Closing is subject to customary conditions and is expected in Q2 2013.