Canaccord has agreed to purchase The Balloch Group for approximately $4m. The acquisition is expected to close on 3 January 2011.
Canaccord said it intends to change the name of The Balloch Group to Canaccord Genuity Asia and its operations will be fully integrated within Canaccord Genuity.
Howard Balloch, president of The Balloch Group, will become the chairman of Canaccord Genuity Asia. He was previously the Canadian Ambassador to China and has spent the last 15 years in the country.
Post acquisition, Balloch will also be appointed as a director on Canaccord Financial’s board of directors.
Canaccord Genuity Asia will focus primarily on providing advisory services to businesses in the region as well as to Chinese companies on their outbound investment and international mergers and acquisitions.
Canaccord Financial president and CEO Paul Reynolds said Canaccord Genuity Asia will combine the strength of its global platform and expertise in advising and raising capital for growth companies, with The Balloch Group’s strong client relationships and established investment banking presence in China.
As part of its strategy to expand in Asia, Canaccord Financial has also entered into a strategic agreement with the Export-Import Bank of China.
Canaccord’s cooperative agreement with the Export-Import Bank of China is aimed at providing China-based clients with an enhanced ability to grow operations internationally, while also providing Canaccord’s international clients with increased access to Chinese debt financing.
"Our new partners from The Balloch Group and our collaboration with the Export-Import Bank of China will anchor our expansion efforts in the region," Reynolds said.
