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US group WisdomTree swoops on ETF Securities

US exchange-traded fund provider buys bulk of UK's ETF Securities business for $611 million.

 
US group WisdomTree swoops on ETF Securities

US exchange-traded fund provider (ETF) WisdomTree Investments has agreed to buy UK group ETF Securities' commodity, currency and short-and-leveraged ETF business for around $611 million (£465 million).

The move hands the US group, the ninth largest ETF provider in the world, a major foothold in the UK and European markets, taking on a further $17.6 billion of assets to take its total to around $66 billion.

ETF Securities' commodities business is its largest and ranks as the third largest ETF commodity business in the world. It includes the company's flagship ETFS Physical Gold (PHAU ), which houses $6.2 billion of assets.

To fund the deal, WisdomTree will pay $253 million in cash and 30 million of its own shares, which will hand ETF Securities an 18% stake in the business.

WisdomTree chief executive Jonathan Steinberg said: 'The acquisition will immediately add scale, diversification and profitability to our business in Europe, the second largest ETF market in the world and a strategically important region for us and the entire industry.' 

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