Lombard Risk Management has sold its credit derivative pricing data business, ValuSpread, to credit ratings agency Fitch Ratings for £6m in cash plus £625,000 in deferred income.
Launched in 1999, ValuSpread provides financial firms with daily data on credit default swap spreads. The service delivers data and analytics for both plain vanilla instruments and for complex structured products.
Fitch says the ValuSpread business will operate as an independent unit within its organisation.
Stephen Joynt, CEO, Fitch Group, says: "The acquisition of ValuSpread enhances Fitch's established data, analytics, and research initiatives that provide the capital markets with forward thinking and greater transparency in this burgeoning market."
Under the deal, Lombard will be provided with continued long-term access to consensus data from the ValuSpread service for use in its independent valuations business through a long-term data subscription from Fitch Ratings.
Lombard says the capital raised from this transaction will provide additional capability for the company to aggressively pursue opportunities in the areas of specialist financial software and independent valuation services.