WisdomTree Investments agreed to buy ETF Securities' European exchange-traded commodity, currency and short-and-leveraged business.
New York-based global exchange-traded product firm WisdomTree will purchase all of ETF Securities' European operations, excluding the exchange-traded funds platform, said a news release Monday. The business has $17.6 billion in assets under management spread across 307 strategies. A WisdomTree presentation provided by a spokeswoman said the deal relates to 43 staff members. WisdomTree has $48.4 billion in AUM.
Total value of the deal is $611 million, consisting of 30 million WisdomTree common and non-voting preferred shares and $253 million in cash, with $200 million from newly issued debt and $53 million from cash on hand. The deal is based on WisdomTree's closing share price of $11.94.
The spokeswoman added that any impact on branding and staff will be determined in the integration process. The deal is subject to regulatory approval and expected to be completed late in the first quarter of 2018.
"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," said Graham Tuckwell, founder and chairman of ETF Securities, in the release. "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."
A spokesman for ETF Securities was not available to comment.