Scotibank has announced that it has signed an agreement with the Canadian Medical Association (CMA) to acquire leading medical-centric financial services company MD Financial Management in a deal worth CAD$2.585bn.
MD Financial holds approximately $49bn in assets under management, serving a significant number of doctors and physicians across Canada.
“MD has served the distinct financial needs of Canada's physician community for decades and has delivered strong results,” said Brian Porter, President and CEO at Scotiabank.
“Through this transaction, MD clients will benefit from a greatly expanded range of financial solutions, including access to expertise across our wealth and asset management businesses.”
The transaction will see Scotiabank acquiring 19.7mn shares at a price of $76.15 per share.
At the close of the acquisition Scotibank and CMA will enter into a 10-year partnership that will see CMA promoting Scotiabank as the preferred provider of financial products and services to physicians across Canada.
“With its existing capabilities in investment management and digital banking, its track record of philanthropy, and its team-based approach to wealth management that addresses the entirety of a client's life, Scotiabank is the best possible partner to help continue MD's proud history of meeting the specific needs of Canada's physicians and their families,” said Brian Peters, MD Financial’s President and CEO.
The deal is expected to complete in Q4 2018.