WisdomTree to acquire ETF Securities’ European ETP business

Nov 14th, 2017 | By | Category: Commodities

WisdomTree has entered into a definitive agreement to buy the European ETP operations of London-based ETF Securities, comprising 307 exchange-traded products, including commodity, currency, and short & leveraged exposures, with over $17.6 billion of AUM combined.

WisdomTree to acquire ETF Securities’ European business

The deal is expected to increase WisdomTree’s global AUM to approximately $66bn.

The deal is reported to be worth $611 million, which WisdomTree has agreed to pay with a combination of cash and shares. Based on current asset figures, a completed acquisition would increase WisdomTree’s global AUM to approximately $66bn, ranking the firm as the ninth largest ETF issuer globally.

Graham Tuckwell, founder and chairman of ETF Securities, commented: “We are pleased to be selling our European exchange-traded commodity, currency and short-and-leverage business to WisdomTree and to become the largest shareholder in the company. I believe this combination creates a uniquely positioned firm which will flourish in the years ahead, continuing to deliver huge value for customers and stakeholders.

“ETF Securities has a strong cultural fit with WisdomTree as both firms have been built from scratch by teams who have worked closely together for many years and who show an entrepreneurial spirit in seeking to deliver innovative and market-leading products for their customers.”

The acquisition instantly scales up WisdomTree’s European operations, diversifies its global AUM and product range, and establishes the firm as a leading provider of commodity-based products in Europe.

Included in the deal is ETF Securities’ flagship gold products, ETFS Physical Gold (PHAU LN) and Gold Bullion Securities (GBS LN), which have over $6.1bn and $3.8bn in AUM, respectively.

Mark Weeks, the UK CEO of ETF Securities, said: “This transaction creates a leading independent global ETP provider which is well positioned to compete in the rapidly growing European ETP market. We have complementary expertise, product ranges and customer networks. We both continue to challenge the status quo to provide customers with a range of differentiated products. In this industry, customers want and value firms like ours, which provide broader choice.”

The deal is the second strategic acquisition for WisdomTree in Europe following the purchase of boutique short & leveraged ETF provider Boost in 2014. It also marks the second major consolidation within the European ETF industry this year after Invesco completed the acquisition of Source in August (see: “Invesco completes acquisition of ETF provider Source”).

The sale to WisdomTree is subject to regulatory approval and is currently anticipated to close in late Q1 2018.

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