KKR to Acquire London's OSTTRA for $3.1 Billion in Strategic Expansion

On April 14, 2025, KKR, a leading U.S. private equity firm, announced a definitive agreement to acquire OSTTRA, a London-based post-trade services provider, for $3.1 billion. The transaction is expected to close in the second half of 2025.

OSTTRA was established in 2021 through the merger of CME Group's and IHS Markit's post-trade businesses. Following S&P Global's acquisition of IHS Markit in 2022, OSTTRA became jointly owned by S&P Global and CME Group. The company offers trade processing and workflow software designed to assist market participants with reconciliation, exception management, and settlement of over-the-counter (OTC) and exchange-traded derivative markets.

The sale proceeds will be evenly split between S&P Global and CME Group. OSTTRA's management team, led by co-CEOs Guy Rowcliffe and John Stewart, will continue in their current roles post-acquisition.

This acquisition aligns with KKR's strategy to expand its investments in financial infrastructure. In March 2025, KKR announced plans to broaden its long-term ownership unit to include investments in infrastructure and real assets. Additionally, in November 2023, KKR acquired the remaining 37% stake in Global Atlantic Financial Group for $2.7 billion, increasing its ownership to 100%.

The acquisition occurs amid a challenging deal-making environment influenced by economic uncertainty and fluctuating tariff policies. Despite these challenges, KKR has remained active in the market, recently agreeing to acquire Karo Healthcare from Swedish private equity firm EQT.

Barclays and Davis Polk advised S&P Global, while Citi and Skadden advised CME Group. KKR was advised by Goldman Sachs, BofA Securities, and Simpson Thacher & Bartlett.

The acquisition of OSTTRA is expected to have significant implications for the post-trade services market, potentially influencing competition and innovation within the sector. It also reflects KKR's strategic focus on financial infrastructure and long-term ownership models. Regulatory approvals will be required for the acquisition, given OSTTRA's role in global financial markets.

In conclusion, KKR's acquisition of OSTTRA underscores the firm's commitment to expanding its presence in the financial infrastructure sector. The transaction is anticipated to close in the latter half of 2025, marking a significant development in the post-trade services industry.