Global wealth management firm Canaccord Genuity has purchased UK adviser Hargreave Hale in a deal worth more than £80m.
Canaccord's UK and European operations now exceed £18bn in private client assets and more than £4.7bn in fund management assets, with Hargreave Hale bringing £8bn in assets under management to the group.
It is the latest step in the Canadian firm's vision to enlarge its global footprint, an part of its ambition to make Canaccord Genuity Wealth Management a top-ten UK wealth manager.
Hargreave Hale provides discretionary investment management and stockbroking services to more that 14,000 private clients. The firm has been independent since it’s conception in 1897 and has grown to become a nationwide business with nine offices stretching from Bangor to York.
Dan Daviau, president and CEO of Canaccord Genuity Group, said: “The acquisition of Hargreave Hale is an important step in our strategy of building a leading independent global wealth management business. The firm has a sound track record of delivering top-quartile investment performances, something which attracted the Canadian company.
“We view this transaction as a significant development in our long-term strategy of transforming our business mix to grow contributions from our global wealth management businesses, and one that will deliver enhanced value for our clients and our shareholders.”
Giles Hargreave, chairman of Hargreave Hale, said: “With its similar business model, shared culture and common values, Canaccord Genuity Wealth Management in the UK represents the ideal partner to continue the successful growth and development of our business.
“Along with our senior management team, I look forward to working with our new colleagues as we continue to deliver excellent investment and wealth management services for our clients.”
As a result of the acquisition, Canaccord Genuity Wealth Management (UK) will pay an initial consideration to the shareholders of Hargreave Hale of £52m, and additional contingent consideration of up to £27.5m.
Additional contingent consideration, if paid, will be funded from the on-going cash flow of the business.
David Esfandi, CEO of Canaccord Genuity Wealth Management in the UK and Europe, said: “We are delighted to announce the acquisition of Hargreave Hale, which wholly supports our ambitious growth plans for Canaccord Genuity Wealth Management in the UK and Europe.
“The strategic rationale for this acquisition is underpinned by it being complementary rather than duplicative. We are committed to investing in and accelerating the growth of Hargreave Hale’s fund management and private client wealth management operations for the benefit of the clients, staff and shareholders of both firms.”