International financial services group Canaccord Genuity has agreed to buy the private wealth business of Mercer Global Investments Canada.
The acquisition is expected to add approximately C$1.5bn (£910m, $1.13bn, €1.03bn) to Canaccord Genuity Wealth Management’s total client assets.
The transaction is expected to close within the next three months and is subject to a number of closing conditions, including regulatory approval.
Upon completion of the deal, current clients of Mercer Private Wealth will have access to the full range of Canaccord Genuity Wealth Management services.
Stuart Raftus, president of wealth management in Canada at Canaccord Genuity Group, said: “Canaccord Genuity Wealth Management and Mercer’s Canadian Private Wealth business are committed to providing clients with optimal outcomes and experiences. We look forward to making a positive impact for our new clients, partners, and employees in the coming months and years.”
Management buyout
This deal comes several weeks after Canaccord Genuity Group’s senior management team launched a C$1.1bn buyout for the Canadian financial services firm.
The takeover group, headed by chief executive and president Daniel Daviau, includes chair David Kassie and all members of the firm’s global operating committee.
Collectively, the group owns 21.3% of the firm’s common shares. They are offering C$11.25 (£6.90) per share, which represents a 30.7% premium to the closing share price on 6 January 2023.
If the buyout succeeds, the group plans to take the firm private.
Canaccord’s largest shareholder, which owns 10.7% of shares, is said to be “supportive of the proposed offer”.
UK activity
The firm’s UK wealth arm has been active with M&A deals over the last few years.
But the most recent deal made by the business was the acquisition of financial planning firm Punter Southall Wealth and DFM business Psigma from Punter Southall Group for £164m (£202m, €186m) in December 2021.
