ETF Securities has continued the sell-off of its European ventures by agreeing to sell its European ETF platform to asset management giant Legal & General Investment.
The move comes hot on the heels of ETF Securities selling its European business unit to WisdomTree for $611 million, which covers exchange-traded commodity, currency and short-and-leveraged business to the New York-based group.
In this latest move, Legal & General Investments – which oversees $1.2 trillion in assets – will acquire Canvas, which is ETF Securities’ Ucits-compliant ETF platform and includes 17 products in total.
The transaction, which is still subject to regulatory approval, will result in a team of Canvas employees joining LGIM as part of the transaction, with the businesses working together to ensure a smooth transition.
LGIM said the acquisition provides it with access to a fast-growing industry segment and broadens both its geographic reach and product range.
Commenting on the deal, Mark Zinkula, LGIM CEO, said: ‘This is a natural step in our strategy to develop products for a wider audience.
‘The acquisition of Canvas enables us to cater to a growing base of clients across Europe and further grow our market share in both retail and institutional markets. LGIM shares a strong cultural alignment with Canvas and we look forward to working with the team going forward.’
Zinkula added that the ETF platform purchase would also complement its existing indexing business, which has $431 billion in assets.