Canadian financial services firm Canaccord Genuity has announced that it is to acquire the Australian business Patersons Securities Limited, which operates in the same industry.
The deal is to be done via Canaccord Genuity’s Australian subsidiary, Canaccord Genuity Australia. Canaccord is to pay AU$25mn (US$17.4mn) representing AU$0.2355 per share.
“This transaction builds upon the work that our Australian partners have done to make Canaccord Genuity an increasingly stronger competitor in Australia” said Dan Daviau, President and CEO of Canaccord Genuity Group Inc. “The addition of Patersons supports our strategy of substantially increasing the scale of our wealth management operations and improving our business mix to deliver greater stability and long-term value for our clients and our shareholders. We look forward to supporting continued growth in Australia.”
A meeting of Patersons shareholders is to be held in October 2019 to vote on the deal, with the company’s directors, who along with senior management comprise 60% of shareholders, unanimously recommending that they vote in favour. The acquisition is expected to be completed during the third quarter of Canaccord Genuity Group’s 2020 fiscal year.
Michael Manford, Executive Chairman of Patersons said: “The rationale for joining Canaccord Genuity is compelling and provides additional breadth and depth of services for our clients, who will benefit from access to globally integrated wealth management, corporate finance and equity research capabilities. Most importantly, the Patersons and Canaccord Genuity Australia teams place a high value on employee partnership and lasting client relationships.”
The transaction is subject to the usual conditions and due diligence. Canaccord is listed on the TSX under the symbol “CF”.