BlackRock (BLK) Acquires Barclays Global Investors Creating $2.7 Trillion Powerhouse
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BlackRock, Inc. (NYSE: BLK) entered into an agreement to acquire Barclays Global Investors (BGI), including its market-leading ETF platform, iShares, from Barclays PLC (NYSE: BCS).
The transaction would create an independent and fully integrated asset management firm with combined assets under management of over $2.7 trillion.
At the closing of this transaction, which is expected to occur in the fourth quarter, Barclays will hold a 19.9% economic interest in BlackRock.
Under the terms of the transaction, BlackRock would acquire BGI in exchange for 37.8 million shares of common and common equivalents in BlackRock and $6.6 billion of cash. The shares will represent a 4.9% voting interest and an aggregate 19.9% economic interest in the combined firm, which will be renamed BlackRock Global Investors.
The cash portion of the purchase price will be funded through a mix of existing cash, committed debt facilities and proceeds from the issuance of equity securities to a group of institutional investors. The cash portion of the purchase price is 100% committed. BlackRock has received commitments from a group of institutional investors to purchase 19.9 million shares at the closing of the transaction for a total of $2.8 billion.
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