Agreement strengthens Canaccord Genuity's market share as the leading independent trader in Canada and leverages its existing back-office infrastructure to aid in the development of fintech solutions to support its capital markets and wealth management divisions
TORONTO, April 25, 2018 /CNW/ - Canaccord Genuity Group Inc. (the "Company"), is pleased to announce that it has entered into an agreement to acquire Jitneytrade Inc. and Finlogik Inc. directly and through the purchase of Finlogik Capital Inc. This development serves to support Canaccord Genuity's mid-market growth strategy by enhancing its market share of equities trading and providing access to new areas of growth through accelerating its development of an enhanced fintech product offering.
Upon closing, the firm's clients will benefit from an expanded product offering which will include futures, options and low latency trading capabilities. This addition also brings deep technological expertise, leverages the firm's existing infrastructure and can aid in the potential future development of discount brokerage and robo-advisory offerings to support the Company's rapidly growing wealth management division.
"Jitneytrade and Finlogik offer a range of technological capabilities that create a compelling opportunity to accelerate revenue growth in our business and add key service offerings, as we continue to meet the evolving needs of our institutional and wealth management clients," said Dvai Ghose, Head of Strategic Development for Canaccord Genuity Group Inc. "We expect that the differentiated and highly scalable Jitneytrade platform for options and futures trading will benefit our existing clients through an enhanced product and service offering."
"On behalf of the partners of Jitneytrade and Finlogik, we are excited to partner with Canaccord Genuity to bring our product offerings to a broader and more diverse range of investors," said JF Sabourin, President & CEO of Jitneytrade. "This development creates a unique opportunity for our business to leverage our trading capability and offer our clients better access to the global financial markets, while further expanding our fintech offering."
Founded in 2001, Jitneytrade Inc. is a direct access broker, the largest trader of futures and an active trader in equity options on the Montréal Exchange, with a diverse customer base which includes discount brokerage clients, sophisticated trading groups and leading institutions in Canada and internationally. The business has been consistently ranked in the top tier by volume for MX Futures and Options and is one of the top 10 active trading brokers on the Toronto Stock Exchange. Jitneytrade will continue to be managed by JF Sabourin, as part of Canaccord Genuity's Canadian operations.
Finlogik has been delivering value-added fintech solutions in the Canadian market for over 15 years. This development will continue as part of the Canaccord Genuity platform. The company designs and manages cloud-based investment solutions, in addition to analytical dashboards that provide benchmarking, reporting and large-scale data processing tools to help investors assess portfolio risk, exposure and performance across a broad range of financial instruments. Finlogik will continue to be managed by Eric Côté as part of Canaccord Genuity in Canada.
Jitneytrade Inc. is a dealer registered with the Investment Industry Regulatory Organization of Canada (IIROC). The acquisition is subject to regulatory approvals and customary closing and pre-closing conditions. It is expected that the integration process with our existing Canadian operations will commence immediately after closing and continue through to the end of the year. During this integration period and until the transition is complete, Jitneytrade will continue to operate as a separate broker-dealer registered with IIROC offering its current products and services to its existing customers.
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. Canaccord Genuity, the international capital markets division, operates in North America, the UK & Europe, Asia, Australia and the Middle East. To us there are no foreign markets.TM
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 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 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. Material factors or assumptions that were used by the Company to develop the forward-looking statements contained in this press release include, but are not limited to, those set out in the Fiscal 2018 Outlook section in the annual MD&A and those discussed from time to time in the Company's interim condensed and annual consolidated financial statements, its annual report and the AIF filed on www.sedar.com. The preceding list is not exhaustive of all possible risk factors that may influence actual results. Readers are cautioned that the preceding list of material factors or assumptions is not exhaustive.
Although the forward-looking statements contained in this press release are based upon what management believes are reasonable assumptions, 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.
SOURCE Canaccord Genuity Group Inc.
For further information: For investor and media relations inquiries: Christina Marinoff, Vice President, Investor Relations & Communications, Phone: 416-687-5507, email: [email protected], www.canaccordgenuitygroup.com