TMX Group Set to Acquire ETF Industry Giant VettaFi in a $1.03 Billion Deal
Summary:
TMX Group, the operator of two major Canadian stock exchanges, has announced its plans to acquire VettaFi, a key player in the exchange-traded fund (ETF) industry including blockchain ETFs. The deal, which will cost $848 million, means TMX Group will own the remaining 78% of VettaFi, with the total acquisition amounting to $1.03 billion. VettaFi was originally formed in May 2022 and offers a wide range of services including global indices, analytics, and more.
As operator of renowned Canadian stock exchanges such as the Toronto Stock Exchange and the Montreal Exchange, TMX Group is in the final stages of procuring VettaFi, a dominant figure in the sector of exchange-traded fund (ETF) - this also includes blockchain ETFs. On 13th of December, TMX Group declared officially that the contract to buy the last 78% of the basic unit of VettaFi, which they were not owning before, has been agreed upon. The agreed cost is $848 million and this new agreement takes the total sum of the acquisition to $1.03 billion. This total sum also includes the investments that TMX Group had previously done in VettaFi in the initial months of 2023 accounting for nearly 22% of the basic units, pointed out the declaration.
John McKenzie, the CEO of TMX Group gave his insights regarding this - "By acquiring VettaFi, our emerging information sector will incorporate a lively new component loaded with invigorating capabilities, coupled with an inventive, visionary squad dedicated to the success of the client." He mentioned that TMX had collaborated with VettaFi earlier and their cooperative venture had resulted in a "profound combination and an excellent cultural alignment."
VettaFi was jointly established by the teams from ETF Trends, ETF Database, Alerian and S-Network Global Indexes in May 2022. VettaFi offers an all-inclusive variety of global indices and ETF services, which includes ETF analytics, a digital ETF database and several other tools.
Besides, the typical financial ETFs, VettaFi also enlists blockchain and cryptocurrency-inspired ETFs. These include the VanEck Digital Transformation ETF (DAPP) which has witnessed a boost of almost 207% to date this year.
A continuous follow-up is being kept on this story and more details will be shared as soon as they are available.
Magazine: Bitcoin OGs and experts throw light on how to safeguard your cryptocurrency in the fluctuating market.
Published At
12/14/2023 4:10:33 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.