Insurance giant Canada Life has reached an agreement to acquire wealth manager Investment Planning Counsel (IPC) from Canadian financial services group IGM Financial (IGM).
This acquisition extends Canada Life’s wealth management reach and capabilities in Canada.
IPC is a wealth and investment company with 650 advisers. Upon closing of the acquisition, Canada Life will be one of the “largest non-bank wealth providers in Canada with over 4,000 adviser relationships, the firm said.
Canada Life will acquire IPC for a total cash consideration of $575m (£460m, €525m), subject to adjustments. The insurer’s parent company Great-West Lifeco expects to fund the transaction with available cash on hand.
The deal is expected to be completed by the end of 2023 and is subject to customary closing conditions including regulatory approvals.
Paul Mahon, president and chief executive of Great-West Lifeco and Canada Life, said: “We are building on our strong Canadian franchise with a growing personal wealth business. This acquisition accelerates Canada Life’s vision to establish a leadership position in the Canadian independent advisor wealth market.
“The addition of IPC, a business we’ve had keen interest in for some time, positions Canada Life for strong organic growth and further investments in market consolidation that supports our strategy.”
Blaine Shewchuk, president and chief executive of IPC, said: “The access to capital will support our ability to attract new advisors, provide innovative portfolio solutions, and continue to invest in helping advisors better serve their clients. Advisers will continue to enjoy the advantages that come with being part of an independent wealth firm, which includes an open architecture investment platform.”
Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses. It operates in Canada, the US and Europe under the brands Canada Life, Empower, Putnam Investments, and Irish Life.
