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Invesco buys ETF provider Source from Warburg Pincus


Invesco (IVZ) has agreed to acquire European exchange-traded funds provider Source from Warburg Pincus, said Invesco spokeswoman Jeaneen Terrio in an email.

Financial terms were not disclosed.

The transaction includes about $18 billion in Source-managed assets, plus about $7 billion in subadvised assets. The acquisition will expand Invesco's factor-based strategies and ETF offerings and add to the investment capabilities the company offers in EMEA and globally.

Invesco, which released its first quarter earnings statement Thursday, had $834.8 billion in AUM as of March 31, including $125 billion in PowerShares ETF AUM.

“We're excited about this opportunity to build on … our existing PowerShares ETF business, which will significantly enhance our ability to deliver meaningful solutions to institutional and retail clients in Europe and around the world,” said Martin L. Flanagan, president and CEO of Invesco, in the news release. “The addition of Source will help us meet increasing demands from clients who want to work with investment organizations that can deliver across the full range of investment capabilities and provide the outcomes they seek.”

Source is majority owned by an affiliate of private equity firm Warburg Pincus. The remainder is owned by Bank of America Merrill Lynch, Goldman Sachs, J.P. Morgan, Morgan Stanley (MS) and Nomura. Invesco is buying the entire company, Ms. Terrio confirmed.

The deal will be funded with available cash and is expected to close in the third quarter of 2017, pending regulatory approvals.