Bloomberg L.P. has entered into an agreement to acquire Barclays Risk Analytics and Index Solutions Ltd., a provider of multiple investment utilities across several asset classes, according to a Bloomberg statement. The acquisition positions Bloomberg as a major index player in the fast-growing exchange-traded funds industry.
Barclays had been looking to sell the business since mid-2014 when it decided the unit was not part of its core operations.
Barclays Risk Analytics and Index Solutions will be sold to Bloomberg for $790 million.
Barclays and Bloomberg said they would maintain a co-branding arrangement on the benchmark indices for an initial term of five years.
“As financial markets continue to evolve, our clients need and expect the index business to evolve too”, said Michael R. Bloomberg in a press release announcing the acquisition.
“This transaction is further evidence of the good work we are doing in managing down our non-core assets so that shareholders can feel the full benefit of ownership of Barclays’ well-performing core businesses”, Staley said. Indeed, the indices have already been assimilated into Bloomberg’s analytic dashboards, portfolio analytics, and order management systems.
Completion is subject to various conditions, including anti-trust approval, and is expected to occur by mid-2016. According to Bloomberg, this will complement the progress that the company has already made into the index business, and incorporating Barclays indices and analytics into its portfolios will provide further value to clients. Barclays will continue to operate POINT for 18 months after the deal completes to help clients transition to other providers.