WisdomTree's stock rose 5.5% to close at $6.30 a share. The company launched its first ETF product in 2006.
The two companies had discussions in 2018 but those talks ended in December because the two sides couldn't agree on price, Bloomberg reported, citing a source familiar with the matter. WisdomTree is not actively seeking a sale currently, but wants to put itself back on the market should shares rebound considerably.
Investors have been moving out of ETFs, which predominantly are passively managed, as market volatility has taken hold in the past several months. Some financial groups have turned to acquisitions for growth, as market uncertainty lies ahead. In April 2018, WisdomTree purchased European exchange-traded commodity, currency and short-and-leveraged business from ETF Securities. That unit held $17 billion in assets under management at the time.
Other M&A in the sector included Invesco LTD (IVZ) - Get Report agreein in October to buy Oppenheimer Funds from Massachusetts Mutual Life Insurance Co. for about $5.7 billion in stock.
WisdomTree shares have fallen 38% in the past year, and are down 5% so far in 2019, including Monday's pop.