The London Stock Exchange Group


Financial Services Carve-Out and Integration-centred in London and
the USA


The London Stock Exchange Group is dynamic organisation that is growing rapidly through a strong acquisition programme. In 2014 it completed the $2.8bn acquisition of Frank Russell Company, a Seattle based business with a market leading Investment Management Business and an Index business who operate the Russell 1000, 2000 and 3000 indices. These indices are the market leading tracking indices in the US domestic equity market, which in itself forms the largest equity market in the world.

The business goals of the acquisition were:

  • To merge the Russell index business with FTSE, the LSEG's index business, generating $163m in annual synergies by 2019, and
  • to separate off and sell the Russell investment Management business

Philip da Silva from Tiger Integration was appointed as Group Programme Director, to lead and manage the Separation and Integration programmes, reporting to the Group CFO, and a sub-committee of Group Exco.

The key challenges were:

  • To deliver some challenging business integration synergies and separation objectives within aggressive timescales,
  • To establish an effective programme governance involving key stakeholders across the LSEG and Russell businesses, that would build trust and cooperation at the highest levels and provide Group EXCO with the visibility of progress, risks and issues
  • Develop and manage cross-functional and cross-business teams that utilised talented permanent SME's already within the business, (supplemented with additional resource). SME's were used to working in a strong functional culture, and but were now working with new colleagues from different geographic cultures (London, New York , and West coast US), and the different corporate cultures of the parent and acquired business.

  • Achievements:

    • Separation completed within 12 months, on time and prior to completion of the on-sale, providing potential buyers with strong reassurance on progress such that Separation was not a significant point of contention within the sale process
    • Delivered, in conjunction with the Index business, an integration that is on track to achieve aggressive cost ($78m) and revenue($85m) synergy targets within the planned timescales.
    • Delivered and managed the overall programme within budget $50m+, minimising AOP impact, without loss of the key staff that we wanted to retain, or adverse impact on Business performance.

 


Endorsement:


"Philip quickly established his credibility with Senior management of LSEG and Russell that allowed him to be effective in leading and managing the Russell programme. He consistently demonstrated sound commercial judgement, and a mature approach to managing sometimes challenging issues through the senior stakeholder group.

Philip was a safe pair hands for such an important project with a high market profile."

 

David Warren, CFO LSEG

Chief Financial Officer,
London Stock Exchange Group

 

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