Acquisition of Eden Financial grows AUM at UK & Europe Wealth Management operations to approximately C$14.3 (£9.0) billion
TORONTO, Sept. 24, 2012 /CNW/ - Canaccord Financial Inc. (TSX: CF, LSE:
CF., 'the Company', 'Canaccord') is pleased to announce it has entered
into an agreement to acquire the wealth management business of Eden
Financial Limited ("Eden"), a boutique UK private client investment
management business, to expand its UK wealth management platform:
Collins Stewart Wealth Management. The acquisition is subject to FSA
Based in London, Eden is an independent, owner-managed private client
investment management business with £835 (C$1,324) million in assets
under management on behalf of 2,500 clients (as at 31 August 2012).
With a personal approach to wealth management and a highly experienced
team, Eden Financial has established itself as a well-respected name in
UK private client investment management.
Canaccord is providing consideration of up to £12.8 (C$20.3) million in
cash, of which £7.68 (C$12.2) million will be payable upon completion
and up to £5.12 (C$8.12) million after 12 months, subject to revenue
retention and revenue mix thresholds. Further incentives of up to £4.0
(C$6.3) million have also been set to reward further revenue growth and
meeting revenue mix targets.
Once Eden Financial becomes part of Canaccord's platform, it is expected
that assets under management at Collins Stewart Wealth Management
(Canaccord's UK, Europe and offshore wealth management operations) will
increase to approximately £9.0 (C$14.3) billion. Globally, on a
combined pro-forma basis including assets from Eden Financial, total
client assets managed and administered by Canaccord's wealth management
businesses would have been C$27.3 billion as at 30 June 2012.
The addition of Eden Financial provides greater scale to Canaccord's
wealth management business in London and bolsters the service offering
and investment opportunities available to Collins Stewart Wealth
Management. Importantly, it reflects Canaccord's strategy of gradually
growing the scale of its wealth management platform to better leverage
opportunities arising from consolidation in the UK wealth management
"We look forward to welcoming the clients and staff of Eden Financial to
the Canaccord platform," said Alexis de Rosnay, CEO of Canaccord's UK
and Europe operations. "Our expanded client base will benefit from a
wider variety of investment opportunities and the backing of an
independent, global financial services company."
Neil Darke, CEO of Collins Stewart Wealth Management adds, "Our
businesses share a steadfast commitment to client service, and we look
forward to maintaining Eden Financial's high-quality, personalised
Eden Financial will initially retain its brand. It is expected that all
of Canaccord's UK, Europe, and offshore wealth management operations
will be rebranded to Canaccord Wealth Management in 2013. Upon
completion of the acquisition, the regulated entity of Eden will change
its legal name to Collins Stewart Wealth Management Limited.
Stephen Massey, Executive Chairman of Eden Financial, will have a seat
on the Board of Canaccord's UK Wealth Management Company, Collins
Stewart Wealth Management Limited, and will continue to have management
responsibility for the Eden team. He will also become a member of the
company's UK Wealth Management Executive Committee. Commenting on the
acquisition of Eden, Stephen Massey said: "I am committed to achieving
a seamless transition for our staff and clients and working towards our
shared objectives for the future. This is an exciting milestone in
the evolution of Eden Financial and I look forward to working with our
new colleagues and delivering exceptional wealth management solutions
to our clients."
Restructuring and other charges related to this acquisition, totaling
approximately £3.3 (C$5.2) million, are expected in Canaccord's fiscal
third quarter. Concurrently, Eden has concluded negotiations regarding
the disposal of their asset management business, full details of which
will be announced shortly.
The acquisition of Eden meets all of Canaccord's stated acquisition
criteria: it is strategically and culturally complementary to
Canaccord's existing business, and excluding restructuring and other
charges, is projected to be accretive to earnings in the first year.
Note: All currency conversions as of 21 September 2012. Bank of Canada
exchange rate of £1.00 to C$1.5851
ABOUT COLLINS STEWART WEALTH MANAGEMENT
Collins Stewart Wealth Management is an award winning investment manager
and stockbroker committed to providing private clients, charities and
intermediaries with a broad array of independent wealth management
Following this acquisition of Eden Financial, Collins Stewart Wealth
Management will manage and administer approximately £9.0 billion of
assets on behalf of over 12,000 clients from its offices in London,
Guernsey, Jersey, Isle of Man and Geneva.
ABOUT CANACCORD FINANCIAL INC.:
Through its principal subsidiaries, Canaccord Financial Inc. is a
leading independent, full-service financial services firm, with
operations in two principal segments of the securities industry: wealth
management and global capital markets. Since its establishment in
1950, Canaccord 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. Canaccord has offices in 12 countries worldwide,
including Wealth Management offices located in Canada, Australia, the
UK and Europe. Canaccord Genuity, the international capital markets
division, operates in Canada, the US, the UK, France, Germany, Ireland,
Italy, China, Hong Kong, Singapore, Australia and Barbados.
Canaccord Financial Inc. is publicly traded under the symbol CF on the
TSX and the symbol CF. on the London Stock Exchange.
SOURCE: Canaccord Financial Inc.
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