Invesco to Acquire Source ETFs

Invesco has entered into a definitive agreement to acquire Source ETFs. According to the two parties, the acquisition is expected to be completed in Q3 2017

Jose Garcia-Zarate 27 April, 2017 | 3:50PM

Invesco has entered into a definitive agreement to acquire Source ETFs. According to the two parties, the acquisition is expected to be completed in Q3 2017, subject to regulatory approval.  The news of the acquisition come after months of speculation about the future of Source. Back in October 2016, the private equity firm Warburg Pincus, which owns a majority stake in Source, announced it was seeking a buyer. 

Source is currently the seventh-largest exchange-traded-product provider in Europe, with a market share of 3.8%. By contrast, Invesco, one of the top 5 largest ETF providers in the United States, has struggled to make inroads in the European marketplace, where it has a meagre market share of just 0.4%. 

As of now, the combination of the two houses would still leave the resulting entity ranking in seventh place in a European ETF market league table where the three largest players - iShares, db x-trackers and Lyxor - control close to two-thirds of the total AUM.  In any case, news of this buyout is likely to further encourage talk of consolidation in the European ETF providers landscape.

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About Author

Jose Garcia-Zarate

Jose Garcia-Zarate  is Associate Director of Passive Strategies Research for Morningstar Europe

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