Invesco has announced it has entered into an agreement to acquire ETF provider Source, which will be combined with its existing PowerShares business.
The transaction includes the acquisition of approximately $18bn (£14bn) in Source-managed assets under management (AUM), plus approximately $7bn in externally managed AUM. This adds to Invesco's PowerShares business, which has AUM of $110bn as at 31 December 2016.
A statement from Source said the acquisition, for an undisclosed sum, is expected to complete in Q3 2017.
Invesco president and CEO Martin L Flanagan said: "We are 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.
"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."
A statement from Invesco said the acquisition is consistent with its strategic priorities globally and in EMEA, and will significantly benefit clients by further adding to range of investment capabilities Invesco offers in EMEA and across the globe and increasing the number of on-the-ground ETF specialists spanning sales, marketing, capital markets, and product management and development.
Invesco senior managing director and head of EMEA Andrew R Schlossberg added: "Source is a leading independent, diversified, at-scale ETF provider in Europe that is highly regarded for its product innovation.
"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."
Source executive chairman Mike Paul said: "Invesco and Source are extremely complementary and the combined business will be a true leader in the ETF market across Europe.
"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."
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