US ETF provider buys Boost for European launch

US ETF provider WisdomTree has acquired UK ETP provider Boost for $20m (£12.2m).

The move sees WisdomTree supply working capital to fund the build-out of a European platform headed up by newly appointed WisdomTree Europe chief executives Hector McNeil and Nik Bienkowski.

WisdomTree says it will launch a range of Ucits ETFs through the platform.

As part of the deal, WisdomTree will take an initial 75 per cent ownership of the European entity whilst existing Boost shareholders will hold the remaining stake.

WisdomTree has the option to buy the remaining shares in the firm based on the performance of the business over a four-year period.

WisdomTree vice chairman Bruce Lavine says: “We believe Europe is poised for continued and significant ETF growth fuelled by constructive regulatory changes and growing customer appreciation of the benefits of the structure. For WisdomTree specifically, the demand for smart beta has never been stronger.”