Standard & Poor’s has reached a deal to acquire Smith Barney’s global benchmark index business from Citigroup.

It says that the indices, now to be known as the S&P/Citigroup Global Equity Indices, add significant capabilities to Standard & Poor’s position as an index provider, strengthening the ability to offer a comprehensive suite of benchmark and tradeable index products and services.

Standard & Poor’s existing indices, such as the S&P 500 and those comprising the S&P Global 1200, will not be affected by the transaction and no changes to the S&P/Citigroup index methodology are foreseen.

The S&P/Citigroup indices cover more than 7,500 companies in 52 markets around the world and offer free float-adjusted index history back to 1989. The depth and breadth of the S&P/Citigroup index data and the continuation of its rules-based methodology will enable Standard & Poor’s to offer institutional investors a comprehensive set of global benchmarks that will meet the needs of both passive and active portfolio managers.

The indices will also provide a platform from which Standard & Poor’s will expand its investible and custom index capabilities.

“Through the addition of this world-class benchmarking business, Standard & Poor’s becomes a full-service index provider, offering the marketplace a wider range of index products and services,” said Paul Aaronson, executive managing director, Standard & Poor’s.

“With the new S&P/Citigroup index series, Standard & Poor’s boosts its ability to offer broad market benchmarks as well as custom indices on a global basis, building on the extensive index data, calculation and analytical tools available in both the S&P/Citigroup and investible indices Standard & Poor’s has developed over the last 75 years.”

“Our decision to work with Standard & Poor1s is the result of thoughtful consideration and our utmost confidence that clients will be provided with the seamless transition of quality and service,” said Bill Kennedy, Director of Global Equity Research, Smith Barney. “Standard & Poor1s longstanding commitment to integrity and excellence makes them a model choice for the operation of these indices. In turn, Smith Barney will use this opportunity to focus on the core areas of its research business.”

S&P/Citigroup constituent issues will be classified according to the Global Industrial Classification Standard, bringing the benchmarks in line with globally accepted standards used by index providers and investors worldwide.

As part of the transition, index staff from Smith Barney will join Standard & Poor’s in the New York and London offices.