The acquired firm offers back-office services, such as custody, trading, clearing, settlement and record keeping, for independent Canadian based registered portfolio managers and introducing brokers.
Based on the terms of transaction, the acquisition’s price may be adjusted if assets decrease and it is expected that the deal will be concluded this year.
The purchase will enable the acquirer to establish its own institutional services operations, which already manages more than $50bn in assets, while serving over 350,000 client accounts.
Assuming full benefit of the acquisition in 2014, the deal is likely to boost National Bank’s 2014 and 2015 recurring EPS by $0.12 and $0.14, respectively.
National Bank Financial co-president and co-CEO and wealth management executive vice-president Luc Paiement said that the deal will add over 260 additional market intermediaries who serve over 130,000 client accounts and manage nearly $34bn in assets.
With $185bn in assets as at 30 April 2013, National Bank of Canada along with its subsidiaries provides an array of banking and wealth management services in the country.
