Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

WisdomTree to acquire $18bn ETF Securities business

WisdomTree to acquire $18bn ETF Securities business

WisdomTree Investments has agreed to acquire ETF Securities' European commodity, currency and short-and-leveraged division. 

Under the agreement, WisdomTree will exchange $253 million (£193 million) of cash and stock consideration of 30 million WisdomTree shares for the acquired business. 

The stocks will give ETF Securities an 18% position in WisdomTree, should they be fully converted.

As at 9 November the division controlled $17.6 billion of assets, lifting Wisdomtree's assets under management to $66 billion. 

#We are very excited to meaningfully expand and enhance our presence and capabilities in the European market by adding ETF Securities' market-leading commodity platform to WisdomTree's differentiated European product offering,' said Jonathan Steinberg, WisdomTree CEO and president.

'The acquisition will immediately add scale, diversification and profitability to our business in Europe, the second largest ETF market in the world and a growing and strategically important region for us and the entire industry.

'The addition of this complementary and competitively positioned commodity business is an important development in WisdomTree's strategy to establish itself as a differentiated and diversified ETP provider that can thrive globally and generate long-term shareholder value.' 

The deal will see 50 ETF Securities staff transfer to WidomTree, when it is finalised at the end of Q1 2018. 

Graham Tuckwell, founder and chairman of ETF Securities, commented: 'We are pleased to be selling our European exchange-traded commodity, currency and short-and-leveraged 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.'



Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: why GWM believes in life after Lloyds

Profile: why GWM believes in life after Lloyds

Lloyds Private Banking duo Chris Payne and Tom Milson left the company two years ago after deciding to act on their belief that ‘we could do it better’

Wealth Manager on Twitter