(Bloomberg) -- Janus Capital Group, which hired Pacific Investment Management's Bill Gross last month, said it agreed to buy VelocityShares for at least $30 million to expand in exchange-traded products.
The investment firm is acquiring the parent company of VelocityShares, which was founded in 2009 and offers products including exchange-traded funds and notes that track swings in market volatility, according to an e-mailed statement today. Janus plans to complete the deal this quarter.
The acquisition will boost Janus presence in exchange- traded products and help the company work with the growing segment of financial advisors and institutions focused on these instruments, Janus CEO Dick Weil said in the statement.
Through the acquisition, Janus is adding clients including hedge funds as well as mutual and pension funds. Janus shares have risen 26% since Gross announced he would work for the Denver-based firm on the expectation that he would attract new investors to the companys funds.
The 70-year-old Gross started managing the Janus Global Unconstrained Bond Fund last week after leaving Pimco in September. He previously managed the worlds biggest bond mutual fund, the $201.6 billion Pimco Total Return Fund.
VelocityShares, based in Darien, Connecticut, employs 11 people and has raised about $2 billion in assets, according to the statement. Its co-founders include Nick Cherney, who formerly worked for Barclays in New York, and Richard Hoge, who previously headed U.S. structured capital products at Natixis SA.
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