US exchange-traded fund provider (ETF) WisdomTree Investments has agreed to buy UK group ETF Securities' commodity, currency and short-and-leveraged ETF business for around $611 million (£465 million).
The move hands the US group, the ninth largest ETF provider in the world, a major foothold in the UK and European markets, taking on a further $17.6 billion of assets to take its total to around $66 billion.
ETF Securities' commodities business is its largest and ranks as the third largest ETF commodity business in the world. It includes the company's flagship ETFS Physical Gold (
To fund the deal, WisdomTree will pay $253 million in cash and 30 million of its own shares, which will hand ETF Securities an 18% stake in the business.
WisdomTree chief executive Jonathan Steinberg said: 'The acquisition will immediately add scale, diversification and profitability to our business in Europe, the second largest ETF market in the world and a strategically important region for us and the entire industry.'