TMX Group X-T, the owner of the Toronto Stock Exchange, said on Wednesday it had acquired an around 78 per cent stake in U.S. data analytics company VettaFi Holdings for $848-million (C$1.14-billion).
In January, the group took a 21 per cent stake in the New York City-based firm, which values the total deal at $1.03-billion.
The deal will be financed through bank debt of up to $1-billion in term loans, and will add to TMX’s adjusted earnings per share in the first year of the deal, excluding synergies, the company said in a statement.
“From a strategic standpoint, this acquisition accelerates TMX’s long-term global expansion, and increases the proportion of revenue derived from our Global Solutions, Insights and Analytics division, and from recurring sources,” said John McKenzie, CEO of TMX Group. As part of the deal, the operator will also assume $100-million of VettaFi’s debt.
VettaFi provides a database of exchange-traded funds (ETFs), analytics and indices, and the exchange operator’s analytics business.