Asset manager Invesco has snapped up one of Europe's largest exchanged-traded fund providers a deal that to bolster its increasingly popular ETF offering.
London-based Source manages $18bn (£14.0bn) of assets directly and a further $7bn on behalf of other managers across a wide range of investment strategies. It is the seventh largest ETF provider in Europe.
"We're 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," said Invesco chief executive and president Martin Flanagan.
"The addition of Source will help us meet increasing demands from clients who want to work with investment organisations that can deliver across the full range of investment capabilities and support the outcomes they seek."
Source has struggled of late as the wafer thin margins have been eroded by larger rivals such as Vanguard and Blackrock. The firm was bought by private equity firm Warburg Pincus in 2014 and despite recent struggles putting Source on the market just three years later surprised some industry experts.
The deal is expected to complete in the third quarter of 2017 and will be funded from cash sat on Invesco's balance sheet.