KKR stock rises on acquisition of fintech

KKR acquired OSTTRA and its post-trading platform from CME Group and S&P Global.

KKR (NYSE:KKR) stock was rising on Monday after it acquired OSTTRA, a provider of post-trade solutions for the global OTC market.

The private equity firm bought OSTTRA from S&P Global (NASDAQ: SPGI) and CME Group, which were the joint owners. The deal is valued at roughly $3.1 billion.

The proceeds will be divided evenly between S&P Global and CME Group, as it is a 50/50 joint venture.

OSTTRA owns a suite of post-trade offerings across interest rates, FX, credit and equity asset classes. Further, the company provides services to banks, broker-dealers, asset managers, and other market participants across trade processing, trade lifecycle, and optimization.

OSTTRA co-CEOs Guy Rowcliffe and John Stewart will continue to lead the company.

“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,” Rowcliffe and Stewart said.

KKR stock jumps 3%

KKR will boost investments in technology and innovation across OSTTRA’s post-trade solutions platform.

“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,” Rowcliffe and Stewart said. “Together, we look forward to delivering even greater value to our customers and helping them navigate the ever-evolving OTC landscape.”

The investment in OSTTRA is mainly through KKR’s North American private equity strategy. KKR will create an equity ownership program for OSTTRA to provide the company’s nearly 1,500 employees with an ownership opportunity.

KKR believes that employee engagement through ownership is a key driver in building stronger companies.

“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,” Webster Chua, partner at KKR, said. “We look forward to working with the OSTTRA team and leveraging our experience in the tech-enabled and financial services sectors to help the company further innovate and drive value for its customers.”

The transaction is expected to close in the second half of 2025, subject to closing conditions and regulatory approvals.

Investors seemed to be in favor of the deal, as KKR stock rose nearly 3% on the day. Also, S&P Global stock jumped 2% and CME stock rose 1%.

KKR stock is down about 30% YTD, but analysts says it’s a buy. It has a price target of $141.50 per share, which would represent a gain of roughly 36%.

KKR stock has been a stellar long-term performer. It has an average annualized return of 34% over the past 5 years and 16% over the past 10 years.