16 December 2015
Barclays PLC
Barclays announces sale of Risk Analytics and Index Solutions business to Bloomberg
Barclays PLC ("Barclays") has today agreed to sell Barclays Risk Analytics and Index Solutions Ltd. ("BRAIS") to Bloomberg L.P. ("Bloomberg") for approximately £520m(1).
BRAIS incorporates Barclays' benchmark indices, including the Barclays Aggregate family of indices. The transaction includes the sale of relevant intellectual property in relation to the POINT portfolio analytics tool. Barclays has agreed to continue to operate POINT for 18 months post completion in order to help clients transition to other providers, including Bloomberg's PORT product. Barclays will retain its quantitative investment strategy index business, with calculation and maintenance of its strategy indices outsourced to Bloomberg.
The pre-tax gain to be recognised on completion of the transaction is expected to be approximately £480m and is estimated to result in a proforma increase of c.10 bps on the 30 September 2015 CET1 ratio. Given the nature of the BRAIS business, it will have a negligible impact on RWAs.
Completion is subject to various conditions, including anti-trust approval, and is expected to occur by mid-2016.
Jes Staley, Barclays Group CEO, said: "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.
"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."
(1) $790m at USD/GBP rate of 1.52
Ends
For further information please contact:
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Investor Relations
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Media Relations
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Kathryn McLeland
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Tom Hoskin
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+44 (0) 20 7116 4943
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+44 (0) 20 7116 6927
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About Barclays
Barclays is an international financial services provider engaged in personal, corporate and investment banking, credit cards and wealth management with an extensive presence in Europe, the Americas, Africa and Asia. Barclays' purpose is to help people achieve their ambitions - in the right way.
With 325 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 130,000 people. Barclays moves, lends, invests and protects money for customers and clients worldwide.
For further information about Barclays, please visit our website www.barclays.com
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