Legal & General Investment Management has agreed to acquire Canvas, the established exchange traded fund platform of ETF Securities Limited.
The acquisition includes the platform and embedded infrastructure for ETFs as well as $2.7bn of existing assets across 17 products and partnerships in equity, fixed income and commodities.
The UK and Ireland based platform is listed on multiple stock exchanges and licensed for distribution in 14 European countries and will enable LGIM to develop a broad range of strategies in the European ETF market.
LGIM chief executive Mark Zinkula said: 'Legal & General is a leader in product innovation and 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 an ETF solutions range that complements 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 going forward.'
At 8:04am: (LON:LGEN) Legal General Group PLC share price was -0.7p at 265.4p