From financial analysis and brokerage services to media outlets like Businessweek, Bloomberg LP is a conglomerate with a stake in multiple sectors. Now the business is strengthening its stake in the finance solutions industry. Today Bloomberg LP announced that it has brokered an agreement with Barclays PLC to acquire its Barclays Risk Analytics and Index Solutions Ltd. (BRAIS) business for approximately $780 million (£520 million).
With this acquisition, Bloomberg LP will receive Barclays PLC’s benchmark indices, including its Barclays Family of Aggregate Bond Indices, as well as its POINT portfolio analytics tool. 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.
“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. “Combining the market-leading Barclays indices and their superb team with our data management, analytics and distribution will provide more independence, liquidity and transparency to the marketplace, improve industry innovation and further meet the diverse needs of our global client base.”
Meanwhile Barclays PLC will hold on to its quantitative investment strategy index business, though it notes that it will outsource calculation and maintenance of its strategy indices to Bloomberg. Barclays has also agreed to continue handling the operation of POINT for the next 18 months, to facilitate a smoother transition for clients during the acquisition process.
“We are pleased to partner closely with Bloomberg upon completion of the transaction, including maintaining a co-branding arrangement on the benchmark indices for an initial term of five years,” said Jes Staley, Barclays Group CEO, in a separate press release from Barclays. “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.”