WisdomTree Completes Acquisition of ETF Securities’ European Exchange-Traded Commodity, Currency and Short-and-Leveraged Business
Thursday 12th April '18
London – WisdomTree Investments, Inc. (NASDAQ: WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, announced today that it has completed its previously announced acquisition of ETF Securities’ European exchange-traded commodity, currency and short-and-leveraged business (“ETFS”), which includes $17.6 billion of assets under management (“AUM”) as of 10 April 2018.
With the addition of ETFS, WisdomTree's AUM has increased to approximately $63.4 billion globally as of 10 April 2018. The acquisition elevates WisdomTree to the 9th largest ETP sponsor globally and the largest global independent ETP provider based on AUM, with significant scale and presence in the US and Europe, the two largest ETP markets.
Consideration for the acquired business was $253 million of cash and stock consideration equivalent to 30 million shares of WisdomTree common stock, representing total consideration of $523 million based on the market close on 10 April 2018. The cash portion of the purchase price was funded with $53 million of balance sheet cash and $200 million from a newly raised term loan.
Jonathan Steinberg, WisdomTree CEO and President, said, “The completion of the acquisition brings together two undeniable forces in the industry, strongly positioning WisdomTree as a differentiated and diversified ETP provider that can thrive globally. Our newly combined talent and broad array of ETP offerings further expand, enhance and complement WisdomTree’s capabilities to continue to help investors achieve their investment objectives and generate long-term shareholder value.”
“The acquisition immediately adds scale, diversification and profitability to our business in Europe – the second largest ETF market in the world – and adds overall strength and resources to WisdomTree globally,” Steinberg added.
The Company will discuss the acquisition in further detail on the Q1 2018 Earnings Call.
WisdomTree Investments, Inc., through its subsidiaries in the US, Europe, Japan and Canada (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately $63.4 billion in assets under management globally.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
About ETF Securities
ETF Securities is one of the world's leading innovators of Exchange-Traded Products (ETPs) and provides specialist investment solutions across multiple asset classes to investors around the world, enabling them to intelligently build and diversify their portfolios. The company is the largest provider of commodity ETPs in Europe, having created the world's first gold ETP in 2003. The company's range of European commodity, currency and short & leveraged ETPs has a total AUM of US$17.6 billion, as of 10 April 2018.