ETF Securities has sold most of its European businesses to WisdomTree.
The arms being sold have assets of £12.9bn and 307 products in their ranges, including the flagship PHAU (Physical Gold) and GBS (Gold Bullion Securities) products which offer access to the gold markets.
ETF Securities is selling its commodity, currency and short-and-leveraged business but keeping hold of the Canvas Platform, which provides a white label ETF services to asset management companies.
The deal with take WisdomTree's assets under management to $66bn (£50.5bn) globally, making it the ninth largest sponsor of exchange-traded products globally.
As part of the deal WisdomTree, which is listed on the Nasdaq stock exchange, will pay $253m for the business and hand over 30m shares in its business, making ETF Securities the largest single shareholder.
Based on Friday's market close price, this takes the total value of the deal to $611m (£467m).
Graham Tuckwell, founder and chairman of ETF Securities, said: “I believe this combination creates a uniquely positioned firm which will flourish in the years ahead, continuing to deliver huge value for customers and stakeholders.
"ETF Securities has a strong cultural fit with WisdomTree as both firms have been built from scratch by teams who have worked closely together for many years and who show an entrepreneurial spirit in seeking to deliver innovative and market leading products for their customers.”
Jonathan Steinberg, the chief executive and president of WisdomTree, said the deal would make his company the largest global independent ETP provider with scale in Europe and the USA.
He said: "The acquisition will immediately add scale, diversification and profitability to our business in Europe, the second-largest ETF market in the world and a growing and strategically important region for us and the entire industry.
"The addition of this complementary and competitively position commodity business is an important development in WisdomTree's strategy to establish itself as a differentiated and diversified ETP provider that can thrive globally and generate long-term shareholder value."
david.thorpe@ft.com
