VettaFi joins TMX Group in a $848m deal, enhancing global indexing and analytics services

VettaFi joins TMX Group in a $848m deal, enhancing global indexing and analytics services

TMX Group, a Canadian multinational with a focus on financial services, and VettaFi Holdings LLC, a leading US-based company specializing in indexing, digital distribution, analytics, and thought leadership, are set to unite. TMX Group has agreed to acquire approximately 78% of VettaFi’s common units for US$848m, marking a significant step in its global expansion strategy.

The acquisition is a pivotal move for TMX Group, aimed at strengthening its position in global data analytics and indexing solutions.

It not only boosts financial and transformational objectives but also increases the proportion of revenue from recurring and global sources. This acquisition also brings innovative client service capabilities to TMX’s rapidly growing Global Solutions, Insights and Analytics (GSIA) division.

TMX Group is renowned for its robust financial services, operating stock exchanges and other platforms for the Canadian securities market. It has a strong focus on creating dynamic and efficient capital markets. The company has been strategically investing in VettaFi, previously acquiring about 22% of its common units.

VettaFi has carved out a strong reputation in the global financial market with its comprehensive suite of indices, ETF services, and digital distribution solutions. The company offers a global ETF database, interactive online tools, and research to support asset managers. VettaFi’s indexing and digital distribution solutions are critical for asset managers looking to innovate and scale their businesses.

John McKenzie, CEO of TMX Group, emphasized the strong cultural and strategic fit between TMX and VettaFi. Leland Clemons, CEO of VettaFi, echoed these sentiments, highlighting the synergistic relationship and shared vision of both companies. Andrew Feller, Managing Partner of Aretex Capital Partners, also praised the leadership team’s focus on innovation and client service.

“TMX Group CEO John McKenzie said, “The acquisition of VettaFi will add a dynamic new component to our growing information business, with  an exciting set of capabilities and a visionary, innovative team committed to client success.

“The experience of working together this year has  confirmed that TMX and VettaFi are a powerful combination and a tremendous culture fit. 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.”

VettaFi CEO Leland Clemons commented, “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.

“Both companies place  a premium on putting the client first and moving opportunity into action. I am excited for VettaFi’s clients, partners and employees as we begin this next chapter. Together, we will make markets and each other  better.”

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