Canaccord Genuity Group Inc, a global investment banking and financial services company specializing in wealth management and brokerage in capital markets, based in Toronto, has announced the successful acquisition of U.S.-based advisory firm Petsky Prunier. The acquisition will allow Canaccord to continue its expansion into the US at scale with a diverse portfolio of investments and acquisitions.
Canaccord Genuity has acquired 100% of the business of Petsky Prunier LLC in an asset purchase for initial consideration of US$30mn in cash and $15mn in common shares of Canaccord Genuity Group Inc. to be issued over a three-year period. Additional contingent consideration of up to$40mn will be paid in cash over a four-year period subject to meeting certain revenue targets over that period.
"Our U.S. capital markets business has become an increasingly stronger regional competitor and this acquisition advances our priority of investing in areas of higher margin potential, as we continue to position our Company for increased stability and long-term profitability," said Dan Daviau, President & CEO, Canaccord Genuity Group Inc. "The addition of Petsky Prunier creates an exceptional opportunity for our North American capital markets business, while simultaneously enhancing long-term value for our partners and shareholders."
"We are delighted to welcome Petsky Prunier's extraordinary team of professionals to our U.S. Capital Markets business and we look forward to meaningfully increasing our impact in the North American mid-market," said Jeff Barlow, President, Canaccord Genuity LLC. "This strategic combination creates a powerful offering for our clients, who will benefit from our significantly enhanced advisory capability and reach in addition to the globally integrated sales, trading, and equity research capabilities that our platform provides."
To ensure a seamless transition for Petsky Prunier clients and employees, Sanjay Chadda, Partner and Managing Director of Petsky Prunier will join the management operating committee of Canaccord Genuity LLC and co-lead the U.S. investment banking group and the U.S. technology, media, marketing and information services practice. In this capacity, he will continue to focus on existing and new client mandates. All existing employees of Petsky Prunier will continue with the combined firms.