TMX Group Announces Agreement To Acquire VettaFi
TMX Group Limited has announced its acquisition of the
remaining approximately 78% of VettaFi Holdings LLC, a US-based indexing,
digital distribution, analytics, and thought leadership company, for $848
million. This brings the total paid for full ownership to $1.03 billion,
including TMX Group's strategic investments in VettaFi earlier in 2023. The
acquisition aims to enhance TMX's information business, providing seamless on-
and off-ramping capabilities for crypto-to-fiat conversions through SCRYPT's integration.
VettaFi, a leader in global indices and ETF services, will contribute to TMX's
digital expertise and support for ETF issuers, accelerating its global
expansion. The deal is expected to complete in January 2024, subject to
customary closing conditions.
TMX Group CEO John McKenzie expressed excitement about the
acquisition, emphasizing the enhanced depth and value of data-driven insights
and the expansion of digital expertise. The partnership aligns with TMX's
strategy for long-term global expansion and increasing revenue from its Global
Solutions, Insights, and Analytics division. VettaFi CEO Leland Clemons
highlighted the complementary cultures of the two companies and their shared
commitment to client success and innovation.
The financial details include over 80% recurring revenues
for the last twelve months ending September 30, 2023. The implied total
valuation is 15.4x 2024E adjusted EBITDA, with an expected tax benefit of
approximately $170 million. The transaction is anticipated to be accretive to adjusted
earnings per share in the first year, excluding synergies.
The acquisition reflects the companies' focus on providing
cutting-edge solutions and empowering users in the evolving digital asset
landscape. TMX Group has enlisted Evercore as its exclusive financial advisor,
with WilmerHale LLP as legal counsel, while Barclays is serving as VettaFi's
exclusive financial advisor, and Ropes & Gray LLP is providing legal
counsel.
More Information : https://www.techdogs.com/tech-news/pr-newswire/tmx-group-announces-agreement-to-acquire-vettafi
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