The agreement will also enable Fiera Capital’s clients to access the French investment management company’s range of investment strategies. Natixis CEO Jean Raby will join Fiera Capital’s board of directors.
Natixis will acquire 10.68 million Class A subordinate voting shares of Fiera Capital from a subsidiary of National Bank of Canada (NBC), and DJM Capital, an entity controlled by Jean-Guy Desjardins (DJM Capital), for C$128.16m ($95m).
Under a long-term distribution agreement, the French firm will offer its international clients complementary Fiera Capital investment strategies through the Dynamic Solutions platform.
Fiera Capital chairman and CEO Jean-Guy Desjardins said: “This partnership with Natixis will further strengthen Fiera Capital’s global leadership position as we continue to execute on our 2022 strategic plan to become one of the top 100 asset managers in the world.”
The partnership also includes a purchase agreement under which Fiera Capital will acquire Natixis’ Canadian operations.
Fiera Capital also plans to repurchase for cancellation 2.45 million Fiera Class A Shares from a subsidiary of NBC for C$29.4m ($22m).
After the share acquisition and share repurchase, NBC will own 6,903,484 Fiera Class A shares and DJM Capital will own 288,206 Fiera Class A shares, representing 8.9% and 0.4%, respectively, of the total issued and outstanding Fiera Class A shares, and 7.1% and 0.3%, respectively, of all issued and outstanding Fiera Capital shares.
Upon completion of the share repurchase, Fiera Capital will have 77,976,287 Fiera Class A shares and 19,412,401 Class B special voting shares issued and outstanding.
In addition to the acquisition of Natixis’ Canadian operations and funds, Fiera Capital will add its public and private investment solutions to expand the range of strategies it distributes.
Subject to customary conditions, including applicable regulatory approvals, the Natixis Canada transaction is expected to close in the third quarter of 2019.
Natixis Investment Managers CEO Jean Raby said: “Fiera Capital has an experienced team, a strong track record and a leading distribution network in Canada, and this partnership will enable both firms to better serve our clients by offering a broader range of active investment strategies.”
