Toronto Stock Exchange’s operator, the TMX Group Limited, announced on 3 January that it would ultimately take over VettaFi Holdings LLC. The company acquired the remaining 78% of the stake of VettaFi Holdings LLC. Combined with the TMX’s initial investment of 22% earlier in 2023, the acquisition has cost around CAD 1.4 billion or USD 1.03 billion.
TMX Group successfully acquires VettaFi for CAD 1.4 billion
VettaFi is a leading and award-winning US-based indexing and digital distribution company serving the ETF and asset management industry. Having around 80% recurring revenue, the deal valued the company at 15X times adjusted EBITDA. Both companies have finalized the deal, and all the processes have been completed as per the official records.
This purchase of TMX Group will help them expand their recurring revenue scores in a data-driven approach. Over this acquisition, the CEO of TMX Group, John McKenzie, said — “The addition of VettaFi increases the depth and value of data-driven insights we provide to clients.”
According to reports, the acquisition was financed using a $1 billion committed bank debt. This is expected to be accretive towards the TMX’s EPS within the first 12 months. Earlier in Feb 2023, TMX Group also acquired a minor stake in ETFLogic, which is another growing FinTech company that caters to asset managers.
After the acquisition, the VettaFi team will work under the TMX’s Global Solutions’ Insights and Analytics division. Over this, the CEO of VettaFi, Leland Clemons, said — “Together, we will make markets and each other better.”
Latest Numbers of TMX Group
As per the latest trading numbers available in the public domain up to November 2023, the company witnessed a total trading volume of 10.3 billion contracts. It’s a slight rise from the 9.45 billion contracts traded in October. However, it’s a dip from last year’s November of 12.6 billion contracts. The approximate trading value of the month touched the $212 billion mark, higher than October’s record of $199 billion.
In Q3 2023, the TMX Group showed a strong growth in revenue. The company’s revenue surpassed $287.3 million, an 8% increase from Q3 2022. This shows the company’s positive growth attitude among its users and stakeholders.
About TMX Group
TMX Group Limited is a well-known company in Canada that offers financial services. It runs many markets for trade, such as stocks, bonds, and other debts, money-related deals called derivatives, plus energy trades. The world knows it well for building money by its stages, like the Toronto stock market, small companies’ exchange, and trust companies doing big things around all of the global finance systems. The goal of the business is to improve markets and support brave thoughts, linking areas of work and groups all over the world. This will help them grow better and give them more chances for money-making actions.