Multi-asset class exchange firm TMX Group agreed to acquire about 78% of digital distribution and analytics company VettaFi Holdings’ remaining common equity for $848 million, on Wednesday.
TMX, earlier in January, acquired nearly 22% of VettaFi’s common equity for $175 million. Also, John McKenzie, chief executive of TMX Group and Rajarathinam, operating chief joined VettaFi’s board. The acquisition now brings the total deal value to $1.03 billion.
McKenzie said, “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,” continued McKenzie.
The Canadian financial services company said the deal is expected to be financed with committed bank debt up to $1 billion in term loans with $600 million, $200 million and $200 million, maturing at 12, 18 and 24 months from the date of close, respectively.
The company said VettaFi will be part of TMX’s Global Solutions, Insights & Analytics segment and the deal is expected to close in January 2024.
US-based VettaFi is a data and analytics company. It provides indexing, data & analytics, industry leading conferences, and digital distribution services to ETF issuers and fund managers.
Leland Clemons, CEO at VettaFi stated, “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.”
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