TMX buys 78% of ETF tool VettaFi for $848M, boosting stake to 100%

TMX Group, the operator of Canadian stock exchanges such as the Toronto Stock Exchange and the Montreal Exchange, is finalizing the acquisition of VettaFi, a major player in the exchange-traded fund (ETF) industry, including blockchain ETFs.

The firm officially announced on Dec. 13 that it has agreed to acquire the remaining 78% of the common units of VettaFi for $848 million that it didn’t already own. The new deal brings the total amount of the acquisition to $1.03 billion, which includes investments TMX Group made in VettaFi in the first half of 2023 for around 22% of the common units, the announcement notes.

“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,” TMX Group CEO John McKenzie noted. He added that TMX had previously worked with VettaFi, and their collaboration had brought a “powerful combination and a tremendous culture fit.”

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VettaFi was founded in May 2022 when the teams from ETF Trends, ETF Database, Alerian and S-Network Global Indexes merged to form one joint company. VettaFi provides a comprehensive suite of global indices and ETF services, including ETF trends and analytics, a global ETF database and other tools.

Apart from traditional finance ETFs, VettaFi lists blockchain and cryptocurrency-themed ETFs, including the VanEck Digital Transformation ETF (DAPP), which has surged nearly 207% year to date.

This is a developing story, and further information will be added as it becomes available.