perspectives

Financial Risk Solution Provider Quantile is Acquired by London Stock Exchange Group plc

Spectrum Equity Announces the Sale of Quantile to LSEG

We’re excited to share the news that Spectrum Equity-backed Quantile has been acquired by London Stock Exchange Group plc (LSEG). It’s a major milestone, especially for a company that is just seven years-old, and we’re thrilled for co-founders Andrew Williams and Stephen O’Connor, and the entire team at Quantile, as they begin this new chapter.

As part of Spectrum’s established fintech franchise, which also includes World-Check (acquired by Thomson Reuters), ethoca (acquired by Mastercard), and seisint (acquired by Lexis Nexis), Quantile is the third portfolio company to be acquired by a global exchange leader in recent years. Nasdaq acquired Spectrum Equity-backed Verafin, an industry pioneer in anti-financial crime management solutions, in 2020. In 2017, CBOE acquired Spectrum Equity-backed Bats Global Markets. As exchanges increasingly look to diversify their businesses, advance their regulatory technology leadership, and make the financial system safe, we think this will be an important trend in fintech M&A going forward.

Quantile’s acquisition also provides further validation of our original investment thesis and approach to partnering with fintech companies operating in the risk, regulatory, and compliance space. For example, when we partnered with Quantile in January 2021, the company exhibited many characteristics that we often seek in new investments, including strong regulatory tailwinds, experienced co-founders, a compelling network-driven business model, and a significant customer ROI.

With so many banks, hedge funds, and other financial institutions relying on Quantile to help them efficiently satisfy regulatory requirements, through reduction of risk and margin obligations associated with derivatives portfolios, we expect Quantile to be a valuable part of LSEG’s post-trade risk solutions division and wish them the very best.

Content contained in this blog post is not intended to and does not constitute investment advice. Your use of the information in this blog post and materials linked is at your own risk. Spectrum Equity does not make any guarantee or other promise as to any results that may be obtained from using this content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is not indicative of future results, and there is a possibility of loss in connection with an investment in any Spectrum Fund. To the maximum extent permitted by law, Spectrum Equity disclaims any and all liability in the event any information, commentary, analysis, and/or opinions prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses. The specific companies identified above does not represent all of Spectrum’s investments, and no assumptions should be made that any investments identified were or will be profitable. View the complete list of our portfolio companies.