The net assets being acquired are valued at $2bn for which Barclays will be paying $250m in cash, this excludes the New York headquarters and the data centres which are believed to be valued at $1.5bn.
Barclays has stated that it has approached leading shareholders who are happy to support the move and that it believes this will lead to the issue of $1bn worth of new equity.
Commenting on this announcement, John Varley, Barclays Group Chief Executive, said: “The proposed acquisition of Lehman Brothers North American investment banking and capital market operations accelerates the execution of our strategy of diversification by geography and business in pursuit of profitable growth on behalf of our shareholders, in particular increasing the percentage of Barclays earnings sourced in North America. This transaction delivers the strategic benefits of a combination with Lehman Brothers core franchise, whilst meeting Barclays strict financial criteria, and strengthening our capital ratios.”
Herbert H McDade III, Lehman Brothers Chief Operating Officer, said "Lehman Brothers strength has always been our client franchise. With this transaction, we have the opportunity to continue the growth and development of our US investment banking and capital market franchises with one of the leading financial institutions in the world. Together with Barclays, these businesses will be a part of a global financial services powerhouse delivering a comprehensive suite of products and services to our clients."