Barclays PLC plans to acquire ETF provider INDEXCHANGE Investment from Bayerische Hypo-und Vereinsbank for about €240 million ($307 million) in cash, according to a news release. INDEXCHANGE will be merged into Barclays Global Investors' iShares ETF business. The transaction is expected to close within three months, following regulatory approvals.
"The combined business will create a powerful force to accelerate the development of ETFs in Europe," Bob Diamond, BGI chairman and president of Barclays, said in a news release. "It is our intention to continue to expand BGI's franchise across Europe and Asia, and this is an important step in the evolution of our strategy."
INDEXCHANGE had €15.2 billion in assets in 79 funds as of Nov. 1. BGI has 38 iShares listed on local exchanges in seven European countries, representing €15.4 billion as of Nov. 1, said Lance Berg, BGI spokesman.
