US asset manager Invesco is to acquire ETF provider Source for a sum reported to be $500 million (€458 million).
Invesco, which operates under the Invesco Perpetual brand in the UK, said the deal would add $25 billion of assets under management to its own ETF business.
The transaction includes about $18 billion in Source-managed assets, and about $7 billion in externally managed assets.
Invesco runs the Invesco Powershares ETF brand, which specialises in factor investing.
No figure was officially released for the deal, though Sky News put it at $500 million.
The acquisition is consistent with Invesco’s strategic priorities globally and in Europe, the Middle East and Africa, Invesco said.
“We’re excited about this opportunity to build on Invesco’s 40 years of factor investing experience and our existing PowerShares ETF business, which will significantly enhance our ability to deliver meaningful solutions to institutional and retail clients in Europe and around the world,” said Martin L. Flanagan, president and CEO of Invesco.
Mike Paul, executive chairman of Source, said: "Invesco and Source are extremely complementary, and the combined business will be a true leader in the ETF market across Europe.”
Source is majority owned by an affiliate of Warburg Pincus, a global private equity firm, and the remainder owned by five major banks.
The transaction will be funded with available cash and is expected to close in the third quarter of 2017, pending regulatory approvals.
Source was advised by JP Morgan as financial adviser and Freshfields as counsel.
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