Invesco has agreed a deal to acquire European exchange-traded funds business Source.
The transaction includes $18bn in Source-managed assets under management, plus around $7bn in externally managed AUM.
The del will be funded with available cash and is expected to complete by September, subject to regulatory approval.
Invesco, which manages $154.3bn in passive investments, says the deal expands its depth and breadth of factor-based strategies and ETFs, enhances its expertise and ability to meet the needs of institutional and retail clients in EMEA and achieve scale in the ETF market globally.
Invesco president and chief executive Martin Flanagan says: “We’re excited about this opportunity to build on Invesco’s 40 years of factor investing experience and our existing PowerShares ETF business, which will significantly enhance our ability to deliver meaningful solutions to institutional and retail clients in Europe and around the world.”
Source executive chairman Mike Paul says: “Invesco and Source are extremely complementary, and the combined business will be a true leader in the ETF market across Europe.
“We are very proud to have built Source into one of Europe’s most competitive and innovative ETF providers with some of the most compelling products in the market.”
Source’s range of products gives investors the ability to gain exposure to equities, commodities, fixed income and alternative assets, through ETF and ETC structures.