Bank of New York Mellon Corp.'s agreement Wednesday to buy Insight Investment Management Ltd. for $387 million from Lloyds Banking Group PLC could force some of the other large custody banks to step up acquisition efforts.

Based in London, Insight Investment specializes in so-called liability-driven investment solutions, active fixed-income asset management and alternative asset management. Founded in 2002, it is the third-largest manager of U.K. pension funds. The deal would add $131.9 billion in assets under management for Bank of New York Mellon.

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