Legal & General Investment Management (LGIM) has bought the ETF Canvas platform from ETF Securities, with plans to develop a broad range of strategies for the European market.
The acquisition includes $2.7bn AUM and 17 products across equity, fixed income and commodities, while the UK and Ireland-based platform is listed on multiple stock exchanges and licensed for distribution in 14 countries.
It follows the purchase of the rest of ETF Securities' European business by WisdomTree, which was announced earlier this week.
A team of Canvas employees with specialist ETF skills will join LGIM as part of the transaction, which is subject to regulatory approvals, with both groups working closely together to ensure the successful integration of the business.
Canvas is a platform that has built a diverse range of ETFs working with partners and directly in a UCITS compliant ETF format. It manages investments for a number of ETFs on the platform, while also allowing partners to launch and manage their own ETFs.
The platform will remain open architecture for differentiated products and for the large majority of ETFs to be managed and distributed by LGIM.
The group said the acquisition provides LGIM's clients with access to one of the fastest growing segments in asset management, broadening its geographical reach and product range.
It will also support LGIM's capabilities and expertise, enabling it to provide more solutions to help clients achieve their investment objectives.
Mark Zinkula, LGIM CEO, said: "As a leader in product innovation, we are constantly exploring ways to deliver new investment solutions for our clients.
"The ETF market is one of the fastest growing segments in asset management. A number of long-term macro trends, including the increasing use of passive vehicles and the drive to digitalisation, will lead to a growing demand for ETF products.
"We are well positioned to leverage the scale of our $431bn index business to develop ETF solutions that complement our existing range of index funds.
"This is a natural step in our strategy to develop products for a wider audience. The acquisition of Canvas enables us to cater to a growing base of clients across Europe and further grow our market share in both retail and institutional markets.
"LGIM shares a strong cultural alignment with Canvas and we look forward to working with the team."
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