Invesco has confirmed that it has acquired European ETFs business Source.
The transaction includes $18bn in Source-managed AUM, plus approximately $7bn in externally managed AUM.
Invesco, which currently manages $154.3bn in passive investments, says the deal expands its depth and breadth of factor-based strategies and ETFs, enhances its expertise and ability to meet the needs of institutional and retail clients in EMEA and achieve scale in the ETF market globally.
“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 chief executive of Invesco.
“The addition of Source will help us meet increasing demands from clients who want to work with investment organisations that can deliver across the full range of investment capabilities and provide the outcomes they seek.”
“Invesco and Source are extremely complementary, and the combined business will be a true leader in the ETF market across Europe,” said Mike Paul, Executive Chairman of Source. “We are very proud to have built Source into one of Europe’s most competitive and innovative ETF providers with some of the most compelling products in the market.”
Source’s range of products gives investors the ability to gain exposure to equities, commodities, fixed income and alternative assets, through ETF and ETC structures.
The transaction will be funded with available cash and is expected to close in the third quarter of 2017, pending regulatory approvals.