Mirae Asset Global Investments has acquired Global X, in a move that gives the Asian business a foothold in the US ETF market.
Mirae Asset, a part of South Korea-based Mirae Asset Financial Group, already own a number of ETF providers in other countries, such as Horizon in Canada, BetaShares in Australia, and Tiger ETF in Asia.
These combined businesses have assets under management of $31 billion, a figure that will be boosted by around $10 billion as a result of the Global X deal.
Global X was founded in 2008 and JP Morgan Asset Management took a minority stake in the business in April 2016. This holding has been acquired by Mirae as part of the deal.
'This merger is a landmark event for the Mirae Asset Global ETF business development,' said Taeyong Lee, president, global head of ETFs for Mirae Asset. 'With Global X on board, we are now connecting one of the most successful US ETF firms to a prominent Asian-based global ETF manager, creating a powerful ETF platform.'
While Global X will be part of the same ultimate company as the other ETF businesses, it will maintain its own brand and management team and there will be no changes to the products it offers.
As a result of the deal, the firm's founders Bruno del Ama, who was chief executive and chairman, and Jose Gonzalez, who was chief innovation officer, will depart the business.
Gonzalez will move to work on Leverage Shares, a range of London-listed leveraged exchange-traded products linked to individual stocks, which launched earlier this year.
This range was owned by Global X, but has been spun out as part of the deal with Mirae.
Current president and chief operations officer Luis Berruga will take over as chief executive. The rest of the management team, including CIO and former Merrill model manager Jon Maier, are expected to remain in place.
'Global X and Mirae Asset's cultures and product suites are a great fit, and I have no doubt that the combined capabilities will enhance the solutions and service that we provide to investors in our funds, and as a result accelerate the success of the combined business globally,' said Gonzalez.
Terms of the deal, which is expected to close in the third quarter of 2018, have not been disclosed.