The deal signed by the Singaporean sovereign wealth fund, which had been speculated upon for a couple weeks, was previously reported by the Financial Times and Reuters to be worth about $500 million, with the stake bought from existing investment banking and institutional stakeholders.
The announcement comes somewhat more quickly than anticipated, as it was suggested earlier in May that a deal with Temasek would happen within the next couple months. The state investor for Singapore, which has significant exposure to financial services firms and about $157 billion under management, historically invests in companies priming themselves for a public offering, though Markit has not yet officially announced its intention or interest in that option.
Previous valuations of Markit suggest the move will make Temasek a significant shareholder in the financial information provider, joining private equity firm General Atlantic, which bought a 7.5 percent stake in the vendor for $250 million in 2010.
"Temasek's investment in Markit is a significant milestone in our company's ten-year history, underscoring our success as a global financial information and services provider. Temasek is an expert investor in entrepreneurial growth companies with a track record in increasing shareholder value. The strength of their position and profile in Asia, an area where we see significant potential and opportunity, will help fuel our growth in the region. We look forward to their participation in our company's strategy," says Lance Uggla, Markit's CEO.
Anthony and James look at developments pertaining to the Consolidated Audit Trail and wonder if big-tech companies could challenge traditional asset managers.Subscribe to Weekly Wrap emails
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