TMX Group announced it’s agreed to acquire 78% of the common units of VettaFi Holdings for $848 million. Including the strategic investments TMX Group made in VettaFi in H1 2023 for 22% of the company, the total amount to be paid for full ownership stands at $1.03 billion.
John McKenzie, chief executive officer at TMX Group, said in a statement. “Moving forward, the addition of VettaFi increases the depth and value of data-driven insights we provide to clients, expands our digital expertise and enriches our industry-leading support for ETF issuers. From a strategic standpoint, this acquisition accelerates TMX’s long-term global expansion, and increases the proportion of revenue derived from our Global Solutions, Insights and Analytics division, and from recurring sources.”
New York-headquartered VettaFi provides a comprehensive suite of global indices through its index factory, ETF services, including ETF trends and analytics, a global ETF database, and digital distribution. In addition to providing interactive online tools and research, VettaFi offers asset managers an array of indexing and digital distribution solutions to innovate and scale their businesses. McKenzie and Jay Rajarathinam, chief operating officer at TMX Group, currently sit on the VettaFi Board of Directors.
“Early on in our relationship with TMX Group it became clear that not only did we have complementary products and solutions, but our companies also have complementary cultures rooted in like-minded values and ambitious vision,” said Leland Clemons, chief executive officer at VettaFi, in a statement.
Andrew Feller, managing partner of Aretex Capital Partners, said in a statement: “We have enjoyed working side-by-side with the team to recruit top financial services and technology talent to better serve the asset management community and its broader ecosystem.”