ETF Securities, which is best known for its precious metals-backed ETF options, has been rumored to be a potential takeover target in the industry, but would-be buyers were loath to pay the rumored price of $1 billion.

“The acquisition will immediately add scale, profitability and diversification to our business in Europe,” Jonathan Steinberg, chief executive of WisdomTree, told Financial Times.

Steinberg said WisdomTree saw that the ETF market in Europe was “poised for an acceleration to growth,” which made this “an ideal time” to a go through with the deal between two complementary businesses. WisdomTree’s ETF line is more focused on global equities and does not include a dedicated group of physical commodities-backed ETFs.

“You need the global footprint to talk to the global investor,” Steinberg told Bloomberg. “This just allows us to be a much more competitive and forceful organization.”

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