Landmark deal that underscores the dynamic nature of the global financial services industry, S&P Global and CME Group have entered into a definitive agreement to sell their joint venture, OSTTRA, to investment funds managed by KKR for a total enterprise value of $3.1 billion. This sale represents a significant strategic move for all parties involved, showcasing a confluence of interests between leading market players and a prominent investment firm. The transaction is anticipated to close in the second half of 2025, subject to customary closing conditions and regulatory approvals.
The Genesis of OSTTRA
OSTTRA, established in 2021 as a 50/50 joint venture between CME Group and S&P Global, has quickly risen to prominence as a premier provider of post-trade solutions for the global over-the-counter (OTC) derivatives market. The company delivers a comprehensive suite of services across multiple asset classes including interest rates, foreign exchange (FX), credit, and equity. These services span trade processing, trade lifecycle management, and optimization—critical components of the financial system that enable market participants to manage risk, reduce costs, and improve operational efficiency.
OSTTRA’s solutions cater to a wide range of financial institutions including banks, broker-dealers, and asset managers. By providing end-to-end connectivity and workflow solutions, the company plays an integral role in ensuring seamless and secure trade processing across global markets. The strength and reliability of OSTTRA’s platform have established it as a critical market infrastructure provider in the evolving landscape of post-trade services.
The Strategic Rationale Behind the Sale
The decision by S&P Global and CME Group to divest their interest in OSTTRA aligns with broader strategic imperatives. For S&P Global, the transaction is consistent with its ongoing portfolio optimization strategy, aimed at focusing on core areas while unlocking value from investments. CME Group, similarly, emphasized the strong performance of OSTTRA and expressed confidence in its continued growth under new ownership.
“OSTTRA has generated significant growth over the past several years, and we are pleased with the role our joint venture played in driving the company forward,” said Terry Duffy, Chairman and CEO of CME Group. “Looking ahead, as the post-trade marketplace continues to evolve, we are confident that KKR will further scale this business and extend the important efficiencies that OSTTRA delivers to clients.”
From S&P Global’s perspective, the deal not only underscores the successful incubation and scaling of a fintech infrastructure provider but also serves as a testament to its ability to create and divest high-value assets. “This transaction reflects S&P Global’s continued commitment to active portfolio optimization in support of our strategy and to fuel future growth,” remarked John Barneson, Chairman of the Board of OSTTRA and Head of Enterprise Solutions at S&P Global Market Intelligence.
KKR’s Investment Vision
KKR, a leading global investment firm, is acquiring OSTTRA through its North American private equity strategy. Known for its extensive experience in technology-enabled and financial services sectors, KKR aims to leverage its deep industry insights to propel OSTTRA into its next phase of growth. The firm plans to support the company with increased investments in technology and innovation to enhance its market-leading post-trade solutions platform.
Webster Chua, Partner at KKR, commented, “We have long admired OSTTRA for its mission-critical solutions, deep customer relationships, and strong market position, which we believe provide a great foundation for future growth. We look forward to working with the OSTTRA team and leveraging our experience to help the company further innovate and drive value for its customers.”
A key element of KKR’s investment approach is its broad-based equity ownership model. Following the closing of the transaction, KKR intends to implement a program that will allow OSTTRA’s nearly 1,500 employees to participate in equity ownership. This initiative reflects KKR’s belief in the power of employee ownership to foster engagement and drive performance. Since 2011, more than 60 KKR portfolio companies have awarded billions of dollars in total equity value to over 150,000 non-senior management employees.
Continuity and Leadership
Despite the ownership change, OSTTRA’s leadership team will remain intact. Co-CEOs Guy Rowcliffe and John Stewart will continue to lead the organization, providing continuity and strategic direction during the transition and beyond. Their leadership has been instrumental in establishing OSTTRA’s reputation and operational excellence.
In a joint statement, Rowcliffe and Stewart said, “We are incredibly grateful for our partnership with CME Group and S&P Global over the past several years and delighted to have KKR’s backing as we embark on this exciting new chapter for OSTTRA. With KKR’s support, we will further accelerate our strategic initiatives to enhance our market-leading post-trade solutions, drive innovation, and expand our global footprint. Together, we look forward to delivering even greater value to our customers and helping them navigate the ever-evolving OTC landscape.”
Market Implications and Industry Context
The sale of OSTTRA occurs at a time when the global financial infrastructure landscape is undergoing rapid transformation. Increased regulatory demands, evolving client expectations, and the rise of new technologies such as distributed ledger technology (DLT) and artificial intelligence (AI) are reshaping how post-trade services are delivered. Market participants are seeking platforms that are not only robust and secure but also agile and scalable.
As a result, companies like OSTTRA that offer comprehensive, interoperable solutions are becoming increasingly vital. The company’s ability to streamline post-trade workflows and offer real-time insights aligns with the industry’s shift toward greater transparency, efficiency, and resilience. Under KKR’s ownership, OSTTRA is well-positioned to build upon its foundational strengths and address emerging challenges in the post-trade domain.
The transaction also highlights the growing investor interest in fintech infrastructure and B2B software providers. These businesses offer recurring revenue models, high client retention, and critical services—characteristics that are particularly attractive in uncertain macroeconomic environments.
Financial and Advisory Details
The $3.1 billion transaction value represents a full exit for both CME Group and S&P Global, with proceeds to be split evenly between the two entities in accordance with their 50/50 joint venture agreement. The deal is subject to customary purchase price adjustments and regulatory approvals.
Advisors played a crucial role in facilitating the transaction. Barclays and Davis Polk served as financial and legal advisors, respectively, to S&P Global. Citi and Skadden provided advisory services to CME Group. On KKR’s side, Goldman Sachs & Co. LLC and BofA Securities acted as financial advisors, while Simpson Thacher & Bartlett served as legal counsel.
Future Outlook
As OSTTRA transitions into its next phase under KKR’s stewardship, the outlook for the company appears robust. The combination of experienced leadership, a stable and growing client base, and enhanced investment from a supportive owner sets the stage for continued expansion and innovation.
The transaction not only validates the strategic vision behind OSTTRA’s formation but also signals confidence in the company’s future prospects. For the broader market, this deal may serve as a bellwether for further consolidation and investment in financial market infrastructure, particularly in the post-trade and fintech segments.
In summary, the acquisition of OSTTRA by KKR marks a pivotal moment for all stakeholders involved. It reflects the maturity and success of the joint venture model, the rising importance of post-trade infrastructure, and the strategic acumen of leading financial institutions and investment firms. As the financial ecosystem continues to evolve, OSTTRA is poised to remain a cornerstone of global market operations, supported by a strong foundation and a forward-looking vision.
Frequently Asked Questions
What is OSTTRA?
OSTTRA is a leading provider of post-trade solutions for the global over-the-counter (OTC) derivatives market. Formed in 2021 as a joint venture between CME Group and S&P Global, OSTTRA delivers services across interest rates, FX, credit, and equity asset classes, with a focus on trade processing, lifecycle management, and optimization.
Who currently owns OSTTRA?
Prior to the announced deal, OSTTRA was jointly owned by CME Group and S&P Global, with each holding a 50% stake.
Who is acquiring OSTTRA, and what is the value of the deal?
Investment funds managed by KKR are acquiring OSTTRA in a transaction valued at $3.1 billion, subject to customary adjustments.
Will OSTTRA’s leadership change after the acquisition?
No, OSTTRA’s co-CEOs, Guy Rowcliffe and John Stewart, will remain in their roles and continue to lead the company through its next phase of growth.
When is the deal expected to close?
The transaction is projected to close in the second half of 2025, pending regulatory approvals and other standard closing conditions.
What are KKR’s plans for OSTTRA post-acquisition?
KKR plans to support OSTTRA’s continued innovation by investing in technology and operations. Additionally, KKR intends to implement a broad-based equity ownership program that will give OSTTRA’s nearly 1,500 employees a stake in the company’s success.
Why are CME Group and S&P Global selling OSTTRA?
The sale aligns with their respective strategies to optimize portfolios and focus on core operations. Both companies recognized OSTTRA’s success and see KKR as the right partner to take the business to the next level.
How will the sale proceeds be distributed?
Since OSTTRA is equally owned by CME Group and S&P Global, the sale proceeds will be split evenly between them.
Conclusion
The acquisition of OSTTRA by KKR marks a transformative moment for the post-trade services space and for the financial infrastructure ecosystem at large. It is the culmination of a successful joint venture and the beginning of a new chapter powered by deeper investment, innovation, and global ambition.
With KKR’s backing, OSTTRA is set to accelerate its mission of delivering advanced post-trade solutions, expanding its global reach, and driving long-term value for its clients. The continued leadership of its co-CEOs ensures strategic consistency and operational strength during the transition.
