Acquisition of Largest European Commodities Platform Adds Profitability and Scale in Growing and Strategically Important European Market; Diversifies Product and Asset Base
Solidifies WisdomTree as Differentiated and Diversified Global ETP Provider
Positioned to Grow and Generate Long-Term Shareholder Value
Combined Company will be Largest Global Independent ETP Provider
Transaction Expected to be Immediately and Significantly Accretive to Earnings
NEW YORK, Nov. 13, 2017 (GLOBE NEWSWIRE) -- WisdomTree Investments, Inc. (NASDAQ:WETF), an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and asset manager, announced today that it has entered into a definitive agreement to acquire ETF Securities' European exchange-traded commodity, currency and short-and-leveraged business (the "Acquired Business"), which includes $17.6 billion of assets under management ("AUM") as of November 9, 2017. The acquisition will provide WisdomTree with immediate scale in Europe, an industry leading position in European-listed gold and commodity products, greater AUM diversification globally, and profitability at WisdomTree Europe and in its International Operating segment.
With the addition of the Acquired Business, WisdomTree's assets under management would total approximately $66 billion globally on a pro-forma basis, as of November 9, 2017. The acquisition will secure WisdomTree's spot as the 9th largest ETP sponsor globally and elevate the company to the largest global independent ETP provider1 with significant scale and presence in the two largest ETP markets: Europe and the U.S.
Under the terms of the agreement, WisdomTree will exchange $253 million of cash and stock consideration of 30 million WisdomTree shares for the Acquired Business. Based on Friday's market close price, the total consideration is valued at $611 million. Excluding one-time transaction and integration costs, WisdomTree expects that the acquisition will be immediately accretive to its earnings per share.
"We are very excited to meaningfully expand and enhance our presence and capabilities in the European market by adding ETF Securities' market-leading commodity platform to WisdomTree's differentiated European product offering," said Jonathan Steinberg, WisdomTree CEO and President. "The acquisition will immediately add scale, diversification and profitability to our business in Europe, the second largest ETF market in the world and a growing and strategically important region for us and the entire industry. The addition of this complementary and competitively positioned commodity business is an important development in WisdomTree's strategy to establish itself as a differentiated and diversified ETP provider that can thrive globally and generate long-term shareholder value."
"We have long held Graham Tuckwell and the business he and his team have built in extremely high regard," continued Mr. Steinberg. "Like WisdomTree, ETF Securities was started from scratch and has had to compete and win at the highest levels of asset management. Graham is one of the true pioneers of the ETF industry as the first to establish an exchange-traded gold exposure on a global basis as well as in Europe. Our shared entrepreneurial spirit should not be underrated in the development of this transaction or in the confidence we both have in our combined company moving forward."
"Over the past 14 years, ETF Securities has built established market positions and a leading brand in the specialized ETP market," said Graham Tuckwell, ETF Securities Chairman and Founder. "Our best in class commodity and currency ETP suite — including Europe's first gold product — has a proven track record of innovation, and has allowed us to develop a highly attractive and diversified institutional, intermediary and retail client base. Our European ETP business and WisdomTree's global business are enormously complementary and the combined business will undoubtedly be a well-diversified, highly innovative force in the industry and best positioned to serve investors' evolving needs."
Key Transaction Terms:
Subject to regulatory approval and other customary closing conditions, the transaction is expected to close in late Q1 of 2018.
Credit Suisse is acting as exclusive financial advisor to WisdomTree and as lead arranger on the debt financing. Goodwin Procter is serving as WisdomTree's legal counsel.
Conference Call Details
WisdomTree will hold a conference call to discuss the acquisition of ETF Securities' ETP business at 8am ET today, November 13, 2017. Those wishing to participate can access the call as follows:
|US/CANADA Participant Toll-Free Dial-In Number:||(877) 303-7209|
|INTERNATIONAL Participant Dial-In Number:||(970) 315-0420|
The corresponding presentation will be available at ir.wisdomtree.com. An audio replay will be available approximately one hour after the call. The audio replay can be accessed as follows:
|US/CANADA Participant Toll-Free Dial-In Number:||(855) 859-2056|
|INTERNATIONAL Participant Dial-In Number:||(404) 537-3406|
1 As measured by AUM.
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe, Japan and Canada (collectively, "WisdomTree"), is an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately $48.4 billion in assets under management globally. For more information, visit our Investor Relations website.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
ETF Securities — The intelligent alternative
ETF Securities is one of the world's leading innovators of Exchange-Traded Products (ETPs) and provides specialist investment solutions across multiple asset classes to investors around the world, enabling them to intelligently build and diversify their portfolios. The company is the largest provider of commodity ETPs in Europe, having created the world's first gold ETP in 2003. The company's range of European commodity, currency and short & leveraged ETPs has a total AUM of US$17.6 billion, as of November 9, 2017.
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WisdomTree Contact Information
WisdomTree Investments, Inc.
WisdomTree Investments, Inc.
Jason Weyeneth, CFA