Denver-based said Monday that it has agreed to buy ., the parent company of , for at least $30 million.
The deal, expected to close during the fourth quarter, gives Janus access to exchange-traded funds and notes that track swings in market volatility, according to an e-mailed statement.
Janus CEO Richard M. Weil said
the deal “is a continuation of our strategy of intelligent diversification, adding new talent to support innovation and smart solutions for our clients.”
Last month, Pacific Investment Management co-founder Bill Gross left the fund to join Janus, where the so-called “bond king” now manages the Janus Global Unconstrained Bond Fund.
VelocityShares, co-founded in 2009 by Nick Cherney and Richard Hoge, and managed today by Cherney, Hoge and distribution chief Steve Quinn, had $2 billion in assets as of Sept. 30. The company employs 11 people, who will join the Janus team, Weil said.
Weil said the team’s expertise and product innovation capabilities will be beneficial to Janus clients and shareholders.
Janus said in a statement that VelocityShares has developed a market leading position in tactical trading products serving short-term investors and traders by focusing on helping clients develop sophisticated trading strategies and volatility management solutions.
“This acquisition positions Janus within the rapidly growing rules-based and active ETF universe, enhancing the customized solutions we can provide our clients and enabling us to work with the growing segment of financial advisors and institutions focused on these instruments,” Weil said.
Cherney, VelocityShares chief investment officer, said in a statement that Janus’ global distribution network and commitment to “product development creates very unique opportunities to deliver institutional quality ETFs to a wide range of investors. Our combined company will be well positions to grow our ETP business and continue to be a leading provider in the market place.”
Howard Pankratz: 303-954-1939, hpankratz@denverpost.com or twitter.com/howardpankratz
Bloomberg News contributed to this report.
