Amplify Investments, sponsor of Amplify ETFs, and ETF Managers Group on Monday announced a definitive agreement under which Amplify will acquire ETFMG's exchange-traded fund lineup, which has assets under management totaling more than $3.5 billion.
Terms of the deal were not disclosed.
In addition to complementing Amplify ETFs' current suite of income, thematic and core ETFs, the acquisition will double Amplify's offerings and "provide investors access to many first-to-market, innovative, and transformational trends through an expanded thematic lineup," Amplify and ETFMG said in a joint news release Monday.
Amplify had 15 ETFs with assets totaling more than $4.2 billion as of May 31, an Amplify spokeswoman said. ETFMG currently has 17 ETFs, an ETFMG spokeswoman said.
For an asset manager, there are benefits to having a broad lineup of thematic strategies, said Todd Rosenbluth, head of research at VettaFi, a data and analytics provider.
"Investors are inclined to work with one fund family across a range of different themes," Mr. Rosenbluth said.
The deal is expected to close later this year pending necessary approvals from fund boards and ETF shareholders, the Amplify spokeswoman said.
"ETFMG has created an impressive roster of strategies and we are excited to acquire its ETFs as these strategies align well with our commitment to being at the forefront of ETF industry growth and innovation," said Christian Magoon, CEO and founder of Amplify ETFs, in the release.
