WisdomTree Investments has completed its previously announced acquisition of ETF Securities’ European exchange-traded commodity, currency and short-and-leveraged business (ETFS), which includes $17.6bn of assets under management (AUM) as of April 10, 2018.
With the addition of ETFS, WisdomTree’s AUM has increased to approximately $63.4bn globally as of April 10, 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 U.S. and Europe, the two largest ETP markets.
Consideration for the acquired business was $253m of cash and stock consideration equivalent to 30 million shares of WisdomTree common stock, representing total consideration of $523m based on the market close on April 10, 2018. The cash portion of the purchase price was funded with $53m of balance sheet cash and $200m 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 company will discuss the acquisition in further detail on the Q1 2018 Earnings Call.