Yahoo Finance Canaccord Genuity to buy Mercer's Canadian private wealth business
Canaccord Genuity Group Inc. said it will acquire the Canadian private wealth business of Mercer Global Investments Canada Ltd. in a deal that will add about $1.5 billion to its wealth management operations’ total client assets.
Canaccord Genuity announced the agreement with Mercer on Feb. 1. The deal is expected to close within the next three months, subject to closing conditions including regulatory approval.
Financial terms of the agreement have not been released.
“Upon completion of the transaction, current clients of Mercer Private Wealth will benefit from being serviced by a company that has a strategic focus on providing a full range of highly customized private wealth management services,” the company said in a press release.
The acquisition announcement comes less than a month after members of Canaccord Genuity‘s management team proposed to take the company private with an all-cash bid worth about $1.127 billion.
Chief executive Daniel Daviau, who is part of the group, said the firm would be able to focus its efforts solely on serving the best interests of its clients after the completion of their offer.
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In its latest earnings report in November, the Canadian broker-dealer recorded a year-over-year decline of 32.5 per cent in its capital markets revenue, driven by a sharp decline in underwriting volumes.
Canaccord Genuity has been growing its wealth management business over the past years. In October 2021, its United Kingdom division completed the acquisition of the private client investment management business of Adam & Company, which commences its entry into the Scottish market.
By the end of 2021, it also completed its acquisition of Sawaya Partners, a leading independent mergers and acquisitions advisory firm to the consumer sector based in New York. Last year, its U.K. wealth management business also acquired Punter Southall Wealth Limited.
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