ETF Securities has agreed a deal to sell its $17.6 billion European business to ETF specialist WisdomTree Investments, the two groups have announced.
The move will see ETF Securities’ exchange-traded commodity, currency and short-and-leveraged business, which includes 307 products, sold to the New York-based group.
ETF Securities said the business has a comprehensive range of commodity, currency and short-and-leveraged products and more than 50 dedicated staff. The sale is still subject to regulatory approval but is expected to be completed by the end of Q1 2018.
The two companies said it would work to ensure a smooth transition of assets and operations. It is understood the deal is set to be completed for around $611 million, according to industry sources.
Commenting on the sale, Graham Tuckwell, founder and chairman of ETF Securities, said: ‘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.’
Tuckwell said the European unit had a ‘strong cultural fit’ with WisdomTree, as both firms were built from the ground up in a similar fields.