American ETF sponsor WisdomTree Investments is to expand its footprint to Europe by acquiring UK-based ETP provider Boost for US$20 million.
As part of the deal, WisdomTree will buy 75% stake in the European entity while existing Boost shareholders will hold the remaining stake.
WisdomTree said that it will invest in working capital to fund the build-out of a local European platform and operations to be led by ETF industry veterans Hector McNeil and Nik Bienkowski.
Through this platform, WisdomTree seeks to launch a select range of UCITS ETFs under the WisdomTree brand and continue to manage and increase the Boost lineup of short and leveraged fully collateralized ETPs under the Boost brand.
WisdomTree intends to acquire remaining 25% ownership from existing Boost shareholders at the end of four years.
Jonathan Steinberg, CEO and president of WisdomTree, said: "As the second largest ETP market after the U.S., Europe is a strategically important market and is the next natural step given our stage of development. Europe will represent our most significant international effort to date, and we are pleased to enter this market with an accomplished team."
Bruce Lavine, vice chairman of WisdomTree, said: "We believe Europe is poised for continued and significant ETF growth fueled 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."