MONTREAL and NEW YORK, Feb. 11, 2015 /CNW Telbec/ - Fiera Capital Corporation ("Fiera Capital" or the "Firm") (TSX: FSZ), a leading independent Canadian investment firm, announced today that it reached an agreement to acquire New York based Samson Capital Advisors LLC ("Samson"), a prominent U.S. fixed income investment management firm with US$7.6 billion in assets under management. Total consideration paid at closing for the transaction will be approximately US$33.5 million, subject to various adjustments. This acquisition will bring Fiera Capital's total assets under management to over CAD$96 billion while bolstering its U.S. presence in the global asset management space.
"With this acquisition, we are creating a full-fledged global asset manager in the U.S, adding strong leadership and investment talent in order to further expand our presence in this dynamic and sophisticated market," said Jean-Guy Desjardins, Chairman and Chief Executive Officer of Fiera Capital. "While we are currently experiencing solid momentum on the U.S. institutional side, this transaction will add significant bench strength to our high-net-worth segment as well as establish a strong foundation for our proprietary investment strategies."
"Our team is excited to join Fiera Capital and to help continue to build a global investment management firm that provides the highest quality in customized service and performance," stated Benjamin Thompson, Chief Executive Officer of Samson. "As we share an entrepreneurial heritage, similar investment values and a client-focused approach, this relationship will benefit clients by enhancing our current investment strategies and fundamental research capabilities, while garnering greater access to equities and other investment solutions."
Fiera Capital U.S. Global Asset Management Subsidiary
As a result of this transaction, Benjamin Thompson, current Chief Executive Officer of Samson, will assume the role of President and Chief Executive Officer of Fiera Capital's U.S. asset management subsidiary. This entity will bring the combined U.S. presence of Samson and existing Fiera Capital U.S. affiliates to US$17.2 billion in assets under management.
"Samson has a strong track record of generating returns and benefits from a robust practice in fixed income that will complement Fiera Capital's existing U.S. presence. We are very excited to join forces with this experienced team as well as the additional leadership they will bring to Fiera Capital in the U.S.," added Mr. Desjardins.
Financial Terms of the Transaction
Total consideration paid at closing for Samson will be approximately US$33.5 million, subject to various adjustments. At closing, Fiera Capital will pay to the sellers US$19.2 million in cash and will issue to the sellers US$14.3 million in Fiera Capital's Class A subordinate voting shares. An additional consideration of up to US$15 million, including an earnout of US$5 million as well as incentives designed for key employee retention will be paid over a period of 5 years on the achievement of agreed upon financial targets. All Class A subordinate voting shares to be issued by Fiera Capital to the sellers will be issued at a price per share equal to the thirty (30) day aggregate volume-weighted average per share price on the Toronto Stock Exchange for the period of the thirty (30) consecutive trading days ending on the second-to-last full trading day prior to the closing.
The acquisition, expected to close during the first half of 2015, is subject to customary conditions, including applicable regulatory approvals and approval of the Toronto Stock Exchange.
About Fiera Capital Corporation
Fiera Capital Corporation is a leading Canadian publicly-traded, independent investment firm, with more than CAD$86 billion in assets under management. The Firm is one of only a handful of full service, multi-product investment firms offering clients a proven top tier track record in Canadian and foreign equity and fixed income management as well as depth and expertise in asset allocation and non-traditional investments. In the U.S., asset management services are provided by Fiera Capital's U.S. subsidiaries, which will operate under the banner Fiera Capital Global Asset Management serving institutional and private clients as well as intermediate-sized institutions. www.fieracapital.com
Additional information relating to the Firm, including the Firm's annual information form, is on SEDAR at www.sedar.com.
About Samson Capital Advisors LLC
Samson Capital Advisors LLC was founded in the spring of 2004. It is a global fixed income and currency investment management boutique. Samson's investment strategies focus on tax efficiency, real wealth preservation, and the development of non-correlated strategies built on our domestic and multicurrency expertise. Their mission is to provide the highest quality of service and performance. Its culture emphasizes integrity, teamwork, excellence, and innovation.
For more about the Samson, please visit www.samsonca.com
This document may contain certain forward-looking statements. These statements relate to future events or future performance, and reflect management's expectations or beliefs regarding future events, including business and economic conditions and Fiera Capital'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" 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 detailed from time to time in Fiera Capital's interim and annual consolidated financial statements, and its Annual Report and Annual Information Form filed on www.sedar.com. These forward-looking statements are made as of the date of this document, and Fiera Capital assumes no obligation to update or revise them to reflect new events or circumstances.
SOURCE Fiera Capital Corporation
For further information: For Fiera Capital: Mélanie Tardif, CPA, CMA, Vice President, Corporate Communications and Investor Relations, 514-954-6456, [email protected]; For Samson: John F. Henderson, Rubenstein Associates, Inc., (347) 886 2896, [email protected]