(Bloomberg) -- BlackRock has agreed to purchase an $87 billion money-market fund business from Bank of America as it builds scale in an industry grappling with new regulations.

The deal will involve merging Bank of America money funds and separate accounts into BlackRock’s offerings, the New York-based asset manager said Tuesday in a statement. This will bring BlackRock’s cash-management business to about $372 billion in assets.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.