This brings together a total of £5.4trn of assets and create a hulk, £3.1trn of assets benchmarked to Russell and £2.3trn benchmarked to the FTSE.
In a stock exchange announcement, the group said it believes the acquisition is a rare opportunity to acquire a high quality US business with a leading global brand providing index and investment management services.
The group also said it would allow it to further capitalise on growth in multi-asset solutions and passive investment strategies, as well as strengthening its relationships with stakeholders.
Analysts have pointed to significant synergies between the LSE’s current activities and the Russell Investments index business as another key driver for the deal.
Earlier in May, the London Stock Exchange Group said it has entered into exclusive talks with The Northwestern Mutual Life Insurance Company.
“Russell's index management business is a strong strategic fit with FTSE,” chief executive of LSEG Xavier Rolet said.
Meanwhile, president and chief executive of Russell, Len Brennan, commented:
“The combination of our index business with FTSE creates a truly global index leader, with a highly complementary fit of products and distribution capabilities and a unique position as a leader in major domestic market benchmarks as well as international equities.”
