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Toronto Stock Exchange operator TMX buys remaining stake in VettaFi for $848 million

Published 12/13/2023, 10:15 PM
Updated 12/13/2023, 10:20 PM
© Reuters. A logo for TMX Group, which operates the Toronto Stock Exchange, is seen after the company announced it was shutting down all markets for the rest of the day after experiencing issues with trading on all its exchange platforms in Toronto, Ontario, Canada

(Reuters) - TMX Group, the owner of the Toronto Stock Exchange, said on Wednesday it had acquired an around 78% stake in U.S. data analytics company VettaFi Holdings for $848 million (C$1.14 billion).

In January, the group took a 21% stake in the New York City-based firm, which values the total deal at $1.03 billion.

The deal will be financed through bank debt of up to $1 billion in term loans, and will add to TMX's adjusted earnings per share in the first year of the deal, excluding synergies, the company said in a statement.

"From a strategic standpoint, this acquisition accelerates TMX's long-term global expansion, and increases the proportion of revenue derived from our Global Solutions, Insights and Analytics division, and from recurring sources," said John McKenzie, CEO of TMX Group.

As part of the deal, the operator will also assume $100 million of VettaFi's debt.

VettaFi provides a database of exchange-traded funds (ETFs), analytics and indices, and the exchange operator's analytics business.

(1 Canadian dollar = $0.7422)

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