TORONTO, Sept. 12, 2024 /PRNewswire/ -- Canaccord Genuity
Group Inc. (TSX: CF) (the "Company") is pleased to announce that
through its wealth management business in the UK & Crown
Dependencies ("CGWM UK") it has entered into a binding agreement
with Brooks Macdonald Group plc ("Brooks
Macdonald") to acquire its wholly owned operating subsidiary
Brooks Macdonald Asset Management (International) Limited
("BMI").
Founded in 2012, BMI provides investment management, financial
planning and fund management services through its offices in
Jersey, Guernsey, and the Isle of Man. As of 30 June 2024, BMI had funds under management of
£2.3 billion and annual revenue of £19.9 million.
The acquisition represents an important addition to the
Company's international operations and, specifically, the addition
of BMI will complement the Company's existing capabilities in
Jersey and provide a strong foundation to strengthen and support
our continued growth and development. Upon completion of the
transaction, the professionals and clients of BMI will benefit from
being part of a larger, dedicated wealth management business with
deep resources and a strong commitment to supporting their
long-term growth and success.
David Esfandi, Chief Executive
Officer of CGWM UK said: "Brooks Macdonald International is a
quality business and an excellent strategic fit for our
international division. This is a mutually beneficial transaction
that will cement Canaccord's position as a fully-fledged integrated
wealth manager. Both firms are well-established across the Crown
Dependencies, and BMI will also add significant financial planning
expertise in our international business. Canaccord has a robust and
scalable operating platform with a proven track record of
successfully integrating businesses, and we anticipate a smooth
process for BMI in 2025."
Andrea Montague, CEO Designate
& Chief Financial Officer of Brooks
Macdonald adds: "We are pleased to announce the sale of BMI
to Canaccord as their presence and understanding of the local
markets will provide a strong foundation for the future growth and
development of the business. I would like to thank all our BMI
colleagues for their commitment to their clients and
professionalism. We wish them all the best for the future."
TRANSACTION OVERVIEW
Consideration to be paid to Brooks
Macdonald on closing will comprise cash in the amount of
£28.0 million with an additional contingent consideration of up to
£22.85 million payable on the second anniversary of completion,
subject to meeting certain revenue targets. BMI will be
acquired by CGWM UK's international subsidiary, Canaccord
Genuity Wealth (International) Holdings Limited, with an agreed
level of regulatory capital, with any surplus paid for at
completion.
Completion of the acquisition is subject to regulatory approval
and other customary closing conditions. The acquisition is expected
to be completed within the quarter ended March 31, 2025.
Spencer House Partners LLP is acting as financial adviser and
Farrer & Co LLP are acting as legal adviser to CGWM UK in
connection with this transaction. Collas Crill is acting as legal
adviser to Canaccord Genuity Wealth (International) Limited.
Raymond James Financial International Limited is acting as
financial adviser and Travers Smith LLP are acting as legal adviser
to Brooks Macdonald in connection
with this transaction.
ABOUT CANACCORD GENUITY GROUP INC.
Through its principal subsidiaries, Canaccord Genuity Group Inc.
(the "Company") is a leading independent, full-service financial
services firm, with operations in two principal segments of the
securities industry: wealth management and capital markets. Since
its establishment in 1950, the Company has been driven by an
unwavering commitment to building lasting client relationships. We
achieve this by generating value for our individual, institutional
and corporate clients through comprehensive investment solutions,
brokerage services and investment banking services. The Company has
wealth management offices located in Canada, the UK, Guernsey, Jersey, the Isle of
Man and Australia. The Company's
international capital markets division operates in North America, UK & Europe, Asia,
and Australia.
Canaccord Genuity Group Inc. is publicly traded under the symbol
CF on the TSX.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain "forward-looking information" as
defined under applicable securities laws ("forward-looking
statements"). These statements relate to future events or future
performance and reflect management's expectations, beliefs, plans,
estimates, intentions and similar statements concerning anticipated
future events, results, circumstances, performance or expectations
that are not historical facts, including the completion of the
acquisition and the timing thereof, receipt of regulatory approvals
for the acquisition, future business growth, business and economic
conditions and Canaccord Genuity Group's growth, results of
operations, performance and business prospects and opportunities.
Such forward- looking statements reflect management's current
beliefs and are based on information currently available to
management. In some cases, forward-looking statements can be
identified by terminology such as "may", "will", "should",
"expect", "plan", "anticipate", "believe", "estimate", "predict",
"potential", "continue", "target", "intend", "could" or the
negative of these terms or other comparable terminology. By their
very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and a number of factors
could cause actual events or results to differ materially from the
results discussed in the forward-looking statements.
In evaluating these statements, readers should specifically
consider various factors that may cause actual results to differ
materially from any forward-looking statement. These factors
include, but are not limited to, market and general economic
conditions; the length of a regulatory review and approval of the
transaction; ability of the parties to meet closing conditions; the
dynamic nature of the financial services industry; and the risks
and uncertainties discussed from time to time in the Company's
interim condensed and annual consolidated financial statements, its
annual report and its annual information form ("AIF") filed on
www.sedar.com as well as the factors discussed in the sections
entitled "Risk Management" and "Risk Factors" in the AIF, which
include market, liquidity, credit, operational, legal and
regulatory risks.
Although the forward-looking statements contained in this press
release are based upon assumptions that the Company believes are
reasonable, there can be no assurance that actual results will be
consistent with these forward-looking statements. The
forward-looking statements contained in this press release are made
as of the date of this press release and should not be relied upon
as representing the Company's views as of any date subsequent to
the date of this press release. Except as may be required by
applicable law, the Company does not undertake, and specifically
disclaims, any obligation to update or revise any forward-looking
statements, whether as a result of new information, further
developments or otherwise.
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