TMX Group Announces Strategic Investment in VettaFi

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Jan 09, 2023, 09:53 ET

Deal includes a commercial agreement that will accelerate TMX Datalinx's expansion, adding new comprehensive sets of index and ETF services

TORONTO, Jan. 9, 2023 /PRNewswire/ - TMX Group Limited (TMX Group) announced today that it has made a strategic investment in VettaFi Holdings LLC (VettaFi), a US-based, privately owned data, analytics, indexing, digital distribution, and thought leadership company. VettaFi cultivates an industry-leading, data-driven platform, built to empower and educate the modern financial advisor, asset manager and institutional investor. TMX Group has acquired approximately 21% of the common equity of VettaFi for US$175 million, or approximately CAD$234 million. The transaction closed January 9, 2023.

"We are excited to announce a significant investment in VettaFi, which includes a commercial agreement that will accelerate TMX's global index strategy and increase the depth and value of data-driven insights we provide to clients around the world," said Jay Rajarathinam, Chief Operating Officer, TMX Group. "VettaFi is a dynamic and growing index, ETF data and related digital distribution business, and we look forward to working together to explore ways to combine TMX Datalinx's data sets and capabilities with VettaFi's comprehensive services and expertise to further enhance our offerings."

VettaFi provides a comprehensive suite of global indices through its index factory, robust ETF services including ETF trends and analytics, a global ETF database, and distribution. In addition to providing interactive online tools and research, VettaFi offers asset managers an array of indexing and digital distribution solutions to innovate and scale their businesses. For more information visit vettafi.com.

"We are thrilled to forge this partnership with TMX, combining VettaFi's data-driven indexing, analytics, and digital platform, and TMX's global scale and TMX Datalinx business," said Leland Clemons, CEO of VettaFi. "Together we'll seek out new innovative opportunities for investors of all sizes around the world to thrive, by creating new products and digital communities and transforming traditional distribution."

John McKenzie, Chief Executive Officer, TMX Group and Mr. Rajarathinam will join the VettaFi Board of Directors, effective immediately.

Evercore served as exclusive financial advisor to TMX Group, and WilmerHale LLP acted as legal counsel to TMX Group.

Caution Regarding Forward-Looking Information

This press release of TMX Group contains "forward-looking information" (as defined in applicable Canadian securities legislation) that is based on expectations, assumptions, estimates, projections and other factors that management believes to be reasonable as of the date of this press release. Often, but not always, such forward-looking information can be identified by the use of forward-looking words such as "plans", "expects", "is expected", "budget", "scheduled", "targeted", "estimates", "forecasts", "intends", "anticipates", "believes", or variations or the negatives of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved or not be taken, occur or be achieved.

Forward-looking information, by its nature, requires us to make assumptions and is subject to significant risks and uncertainties which may give rise to the possibility that our expectations or conclusions will not prove to be accurate and that our assumptions may not be correct. Such factors include, but are not limited to: market competition; economic conditions generally; adverse effects on our results caused by global economic uncertainties (including Covid-19); the level of activity on our markets, and particularly the level of trading in TMX Group's key products. A description of the above-mentioned items is contained in the section Enterprise Risk Management of our 2021 Annual MD&A.

We have no intention to update this forward-looking information, except as required by applicable securities law. This forward-looking information should not be relied upon as representing our views as of any date subsequent to the date of this press release. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

About TMX Group (TSX:X)

TMX Group operates global markets, and builds digital communities and analytic solutions that facilitate the funding, growth and success of businesses, traders and investors. TMX Group's key operations include Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montréal Exchange, Canadian Derivatives Clearing Corporation, and Trayport which provide listing markets, trading markets, clearing facilities, depository services, technology solutions, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across North America (Montréal, Calgary, Vancouver and New York), as well as in key international markets including London, Singapore and Vienna. For more information about TMX Group, visit our website at www.tmx.com. Follow TMX Group on Twitter: @TMXGroup.