ATLANTA, April 27, 2017 /PRNewswire/ -- Invesco Ltd.
(NYSE: IVZ) announced today that it has entered into a definitive
agreement to acquire Source, a leading, independent specialist
provider of exchange-traded funds (ETFs) based in Europe. The
transaction includes approximately $18
billion in Source-managed AUM, plus approximately
$7 billion in externally managed AUM
(as of March 31, 2017). The
acquisition brings additional talent and a broad array of funds
that further expand the depth and breadth of Invesco's active,
passive and alternative capabilities and expertise, enhancing the
firm's ability to help clients achieve their investment
objectives.
The acquisition is consistent with Invesco's strategic
priorities globally and in EMEA, and will significantly benefit
clients by further:
- Expanding the depth and breadth of factor-based
strategies and ETFs, adding to the comprehensive range of
investment capabilities Invesco offers in EMEA and across the
globe;
- Enhancing Invesco's expertise and ability to meet the
needs of institutional and retail clients in EMEA with the addition
of dedicated on-the-ground ETF specialists spanning sales,
marketing, capital markets, and product management and development;
and
- Strengthening Invesco's position in EMEA while achieving
additional scale and relevance in the growing ETF market
globally.
"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," said
Martin L. Flanagan, president and
CEO of Invesco. "The addition of Source will help us meet
increasing demands from clients who want to work with investment
organizations that can deliver across the full range of investment
capabilities and provide the outcomes they seek."
"Source is a leading independent, diversified, at-scale ETF
provider in Europe that is highly
regarded for its product innovation," said Andrew R. Schlossberg, senior managing director
and head of EMEA for Invesco. "The combination with Invesco
will further strengthen our presence, expand our access to key
client channels and enhance the expertise within our growing EMEA
business."
"Invesco and Source are extremely complementary, and the
combined business will be a true leader in the ETF market across
Europe," said Mike Paul, Executive Chairman of Source.
"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.
Our drive for new product excellence will remain at the heart of
the combined business."
About the transaction
Source is majority owned by an affiliate of Warburg Pincus, a
global private equity firm focused on growth investing, and the
remainder owned by five major banks. The transaction will be funded
with available cash and is expected to close in the third quarter
of 2017, pending regulatory approvals. Source was advised by
J.P. Morgan Limited as financial advisor.
About Invesco Ltd.
Invesco is an independent investment management firm dedicated
to delivering an investment experience that helps people get more
out of life. NYSE: IVZ; www.invesco.com.
About Source
Source is an investment firm and one of Europe's leading Exchange Traded Product (ETP)
providers. Since launch in April
2009, Source has focused on delivering incremental value to
European ETP investors through a combination of enhanced indices,
strong partnerships, improved structuring and active trading. Its
range of products gives investors the ability to gain exposure to
equities, commodities, fixed income and alternative assets, through
ETF and ETC structures with deep liquidity, increased transparency
and reduced counterparty risk. Further information about
Source is available at www.sourceETF.com.
This release may include "forward-looking statements."
Forward-looking statements include information concerning future
results of our operations, expenses, earnings, liquidity, cash flow
and capital expenditures, industry or market conditions, AUM,
acquisitions, debt and our ability to obtain additional financing
or make payments, regulatory developments, demand for and pricing
of our products and other aspects of our business or general
economic conditions. In addition, words such as "believes,"
"expects," "anticipates," "intends," "plans," "estimates,"
"projects," "forecasts," and future or conditional verbs such as
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statement that necessarily depends on future events, are intended
to identify forward-looking statements.
Forward-looking statements are not guarantees, and they involve
risks, uncertainties and assumptions. There can be no assurance
that actual results will not differ materially from our
expectations. We caution investors not to rely unduly on any
forward-looking statements and urge you to carefully consider the
risks described in our most recent Form 10-K and subsequent Forms
10-Q, filed with the Securities and Exchange Commission. You may
obtain these reports from the SEC's Web site at www.sec.gov. We
expressly disclaim any obligation to update the information in any
public disclosure if any forward-looking statement later turns out
to be inaccurate.
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SOURCE Invesco Ltd.