In an attempt to accelerate its Smart Beta efforts, Ameriprise Financial, Inc. (AMP Quick QuoteAMP - Free Report) closed the deal to acquire Emerging Global Advisors through its affiliate Columbia Threadneedle Investments. The deal terms remain undisclosed.

Although Ameriprise shares were down 1.2% following the deal closure announcement, it had gained about 5% since the transaction was announced on May 11.

The affiliate’s aim is to establish a foothold in the exchange-traded fund (ETF) market. Further, Colombia Threadneedle recently filed for multiple ETFs under the Columbia Beta Advantage banner. The attempt is to grow organically by offering its own smart beta strategies.

Emerging Global is an established player in the smart beta market accomplished by its ETFs based on customized indices. The acquisition is expected to complement Columbia Threadneedle’s existing actively managed product lineup and add Emerging Global’s expertise in product design, marketing and distribution of smart beta strategies.

Apart from assisting in the operations and trading functions specific to ETFs, Emerging Global will help to develop the necessary marketing collateral, sales strategy and wholesaler tactics.

Columbia Threadneedle plans on using Emerging Global’s product development team and sales network to establish an immediate presence in the smart beta ETFs.

Further, Columbia Threadneedle has also signed a preliminary licensing deal to develop nontransparent strategies by using NextShares technology owned by Eaton Vance Corp. (EV Quick QuoteEV - Free Report) .

The transaction marks the second acquisition of Colombia Threadneedle in the ETF market. Colombia first broke into the ETF market with the acquisition of Grail Advisors in May 2011.

Currently, Ameriprise Financial Inc. holds a Zacks Rank #4 (Sell). Some better-ranked stocks in the same space include Federated Investors, Inc. and Fifth Street Asset Management Inc. , each carrying a Zacks Rank #2 (Buy).

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