International firm acquires advice group

A national financial advice group with more than 120 advisers on its books is to be acquired by a major Canadian wealth manager.

Patersons Securities is being purchased by Canaccord Genuity via its Australian operations, Canaccord Financial Group.

As a result, Patersons will rebrand to CG Patersons.

The deal will see Canaccord's Australian presence expanded significantly. Headquartered in Perth, Patersons provides wealth management and stockbroking services in 11 offices across Australia.

It also engages in corporate finance activities, providing debt and equity solutions for emerging small- and mid-cap companies in Australia.

According to Rainmaker analysis of ASIC's Financial Adviser Register, Patersons is home to 126 financial advisers, as at March 2019.

Founded in 1903, it currently has about $13.6 billion in funds under advice.

The transaction is expected to complete by the end of the calendar year. Cash consideration of $25 million will be payable on closing, at which time Canaccord Genuity plans to implement an equity incentive scheme for key Patersons personnel.

The acquisition is subject to shareholder approval, though 60% of shareholders have already indicated they will vote in favour of the transaction.

Canaccord Genuity president and chief executive Dan Daviau said the transaction builds upon the work done by its Australian team to establish the firm as a competitor in the region.

"The addition of Patersons supports our strategy of substantially increasing the scale of our wealth management operations and improving our business mix to deliver greater stability and long-term value for our clients and our shareholders. We look forward to supporting continued growth in Australia," Daviau said.

"The cultural alignment between the two teams has been clear from our first interaction and has been the foundation for all discussions," Canaccord Genuity Australia chief executive Marcus Freeman added.

"We are delighted to welcome Patersons' outstanding team of professionals to our firm and we look forward to working together to deliver enhanced services and opportunities for our combined client base."

Patersons executive chair Michael Manford said the rationale for joining Canaccord Genuity is compelling, with clients set to benefit from access to globally integrated wealth management, corporate finance and equity research capabilities.

Manford will move to executive chair of CG Patersons. The remainder of Patersons' senior management will continue in the combined business.

Read more: CG PatersonsPatersons SecuritiesCanaccord Genuity AustraliaCanaccord Financial GroupDan DaviauMichael ManfordASICMarcus Freeman
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