TMX Group seizes full control of VettaFi with $848m deal

  • TMX Group, the operator of the Toronto Stock Exchange, acquires the remaining 78% stake in VettaFi for $848 million, assuming full ownership of the firm.
  • The acquisition follows TMX Group’s initial purchase of a 22% stake in the US-based indexing and analytics company for $175 million.
  • VettaFi, founded in 2022, provides ETF insights, indexing and analytics services for asset managers and investors.
  • TMX Group plans to integrate VettaFi into its global solutions, insights and analytics unit, believing this will enhance its data-driven insights and support global expansion.

Canadian financial market operator TMX Group has taken full ownership of New York City-based indexing and analytics company VettaFi. The remaining 78% stake was purchased for $848 million (CAD 1.15 billion), following the group’s initial $175 million (CAD 234 million) investment for roughly 22% of the company in early 2023.

The acquisition will be financed through bank debt with term loans of up to $1 billion (CAD 1.36 billion). The deal, expected to finalize next month, will bring the total amount paid for VettaFi to $848 million (CAD 1.15 billion). TMX Group will also assume $100 million (CAD 136 million) of VettaFi’s debt as part of the agreement.

VettaFi offers ETF insights, indexing and analytics services to asset managers and investors. It was established in May 2022 by teams from ETF Trends, ETF Database, Alerian and S-Network Global Indexes. Following the purchase, VettaFi will become part of the TMX Group’s global solutions, insights and analytics unit.

TMX Group’s CEO John McKenzie highlighted the strategic benefits of the acquisition, stating that VettaFi’s incorporation into the group “increases the depth and value of data-driven insights we provide to clients”. He also expressed confidence that the move will accelerate the group’s long-term global expansion and boost the revenue from its global solutions, insights and analytics unit.