Exchange operator TMX invests $175 million in data analytics firm VettaFi

(Reuters) - TMX Group Ltd, owner of the Toronto Stock Exchange, said on Monday it had taken a 21% stake in U.S. data analytics company VettaFi Holdings LLC for $175 million (C$234 million) as it looks to expand its information services unit.

As part of the deal with New York City-based VettaFi, which provides a database of exchange-traded funds (ETFs), analytics and indices, the exchange operator's analytics business, TMX Datalinx, will offer index and ETF services.

Exchange operators globally have been trying to diversify their business models and bring in additional sources of revenue which are less sensitive to rapid shifts in market conditions.

In 2020, New York Stock Exchange-operator Intercontinental Exchange Inc agreed to buy mortgage software firm Ellie Mae. The same year, Nasdaq Inc also acquired fraud detection firm Verafin.

(Reporting by Niket Nishant in Bengaluru; Editing by Shinjini Ganguli)