The London Stock Exchange Group has agreed to sell asset manager Russell Investments to US private equity firm TA Associates for £752m.
The London Stock Exchange initially announced its intention to sell Russell Investments, which it acquired when it bought the Frank Russell investment firm last year, in February.
The group expects the index business to be completely separated from Russell Investments before the sale takes place in the second half of 2016.
The deal is still subject to customary closing adjustments, as well as regulatory and other required approvals.
Private US Investment firm Reverence Capital has joined TA Associates, and will make a significant minority investment in Russell Investments.
"We are delighted to partner with such an established and highly respected market leader in the investment management industry,” Todd Crockett, a managing Director at TA Associates, said.
"We believe that the breadth of Russell Investments’ investment and implementation operations, as well as its orientation to multi-asset and solutions investing, will continue to be a differentiator and driver of growth in the marketplace going forward."
Russell has $266bn (£173bn) under management, and made a pre-tax profit of £28m in the six months to 30 June.
The London Stock Exchange reported pre-tax profit rose 20 per cent to £205.2m during the same period.