- TMX Group (TSX:X) will acquire the remaining 78 per cent of the common units of VettaFi for C$1.15 billion
- This brings the total amount to be paid for full ownership to C$1.40 billion, which includes the investments TMX Group made in VettaFi in the first half of 2023 for approximately 22 per cent of the common units
- The deal is expected to Increase the proportion of revenue from recurring and global sources
- TMX Group stock (TSX:X) last traded at C$30.98 per share
TMX Group (TSX:X) will acquire the remaining 78 per cent of the common units of VettaFi for C$1.15 billion.
This brings the total amount to be paid for full ownership to C$1.40 billion, which includes the investments TMX Group made in VettaFi in the first half of 2023 for approximately 22 per cent of the common units.
The deal is expected to Increase the proportion of revenue from recurring and global sources. The transaction will be financed with committed bank debt up to C$1.36 billion in term loans, with plans to return to target leverage range two years after the deal closes.
The transaction is expected to be complete by January 2024, subject to conditions.
“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,” John McKenzie, chief executive officer of TMX Group said in a news release. “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. 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.”
A prominent player in the exchange-traded fund (ETF) industry (including in blockchain and crypto ETFs), VettaFi provides a comprehensive suite of global indexes and ETF services, including ETF trends and analytics, a global ETF database and other tools.
TMX Group operates global markets and builds digital communities and analytic solutions that facilitate the funding, growth and success of businesses, traders and investors. The group’s main operations include the Toronto Stock Exchange, the TSX Venture Exchange and the TSX Alpha Exchange.
TMX Group stock (TSX:X) last traded at C$30.98 per share. The stock has added 11.24 per cent over the past year and 121.58 per cent since 2018.
Join the discussion: Find out what everybody’s saying about this top Canadian stock on the TMX Group Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
