LONDON, March 21, 2019 /PRNewswire/ --
Acquisition expands UK and
Isle of Man coverage and
contributes to additional growth in client assets, further
increasing contributions from the Company's wealth management
operations
Canaccord Genuity Group Inc. (TSX: CF) (the "Company") is
pleased to announce that through its UK & Europe based wealth management business,
Canaccord Genuity Wealth Management ("CGWM (UK)"), it has entered
into a share purchase agreement to acquire Thomas Miller Wealth
Management Limited ("TMWML") and an asset purchase agreement to
acquire the private client investment management business of Thomas
Miller Investment (Isle of Man)
Limited.
TMWML is an integrated wealth manager headquartered in
London and provides financial
planning and investment management services to private clients,
trusts, charities and corporates in the UK. Services are centred on
a model of professionalism and trust, which has resulted in strong
client loyalty and steady growth of inflows and assets over a
five-year period. Client assets of TMWML and the private client
investment management business in the Isle of Man total approximately £1.0 billion
(C$1.8 billion) and together
generated revenue of approximately £8.4 million (C$14.8 million) for the year ended December 31, 2018.
"The addition of Thomas Miller Investment's private client
business supports our long-term strategic ambition of expanding our
footprint, whilst enhancing our financial planning business to
ensure a truly client-centric offering that is essential for the
future generational planning needs of our growing client base,"
said, David Esfandi, Chief Executive
Officer of CGWM (UK). "With a modern and scalable platform, we have
a proven track record of integrating businesses and client assets
and we are deeply committed to ensuring that the business and
clients of Thomas Miller Investment will have a successful future
with CGWM (UK)."
The acquisition is welcomed by Thomas Miller Investment given
the similarities in specialist investment and independent financial
planning offerings and the dedication to best-in-class client
services shared by the two businesses.
Hugh Titcomb, Chief Executive
Officer of Thomas Miller Investment said: "We are very proud
of how the Thomas Miller Investment private client activities have
developed over the past few years. We believe the transfer of the
business to Canaccord Genuity Wealth Management provides an
exciting opportunity to continue this development for the benefit
of our clients and staff, supported by the significant resources
and commitment provided by the Company. Completing this transaction
will allow Thomas Miller Investment to focus on its core
institutional investment management activities."
TRANSACTION OVERVIEW
It is expected that the acquisition will be immediately
accretive to the Company's adjusted earnings1.
Consideration of £18.5 million (C$31.8
million) will be payable on closing, with additional
contingent consideration of up to £9.5 million (C$16.8 million) payable over a period of three
years following completion subject to achievement of performance
targets related to revenue and client assets. In connection
with the acquisition, an additional £17.0 million (C$30.0 million) has been added to the Company's
existing bank loan facility.
Closing is subject to regulatory approval and other customary
closing conditions. The acquisition is expected to be completed
during the quarter ended June 30,
2019, which will be the first fiscal quarter of Canaccord
Genuity Group's 2020 fiscal year.
ABOUT CANACCORD GENUITY GROUP INC.:
Through its principal subsidiaries, Canaccord Genuity Group Inc.
(the "Company") is a leading independent, full-service financial
services firm, with operations in two principal segments of the
securities industry: wealth management and capital
markets. Since its establishment in 1950, the Company has been
driven by an unwavering commitment to building lasting client
relationships. We achieve this by generating value for our
individual, institutional and corporate clients through
comprehensive investment solutions, brokerage services and
investment banking services. The Company has Wealth Management
offices located in Canada, the UK,
Guernsey, Jersey, the Isle of Man and Australia. Canaccord
Genuity, the international capital markets division, operates in
North America, the UK &
Europe, Asia, Australia and the Middle East.
Canaccord Genuity Group Inc. is publicly traded under the symbol
CF on the TSX.
ABOUT CANACCORD GENUITY WEALTH MANAGEMENT
The wealth management operations of the Canaccord Genuity group
(Canaccord Genuity Wealth Management) provide comprehensive wealth
management solutions and brokerage services to individual
investors, private clients, charities and intermediaries through a
full suite of services tailored to the needs of clients in each of
its markets. Canaccord Genuity Wealth Management has Investment
Advisors (IAs) and professionals in Canada, the UK, Jersey, Guernsey, the Isle
of Man and Australia and
has advisors in Canada who are
registered in the US. In Canada,
Canaccord Genuity Wealth Management is a division of Canaccord
Genuity Corp. In the UK, Canaccord Genuity Wealth Management
operates as Canaccord Genuity Wealth Limited and, in the
Channel Islands and the
Isle of Man, as Canaccord Genuity
Wealth (International) Limited. Canaccord Genuity Wealth Management
deals with US persons through Canaccord Genuity Wealth Management
(USA) Inc.
To learn more about CGWM (UK),
visit https://www.canaccordgenuity.com/wealth-management-uk/
ABOUT THOMAS MILLER INVESTMENT
Thomas Miller Investment (TMI) is an independent, specialist
investment and wealth management business operating from offices in
the UK and Isle of Man. It is
known for its responsive and disciplined approach to servicing the
needs of its clients, which comprise institutions and private
clients. TMI is part of the Thomas Miller Group, an independent and
international provider of insurance, professional and investment
services which has been looking after its clients' interests for
over 130 years. Following the sale of its private client
activities, TMI will focus on providing investment management
services to institutional clients.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
This press release may contain "forward-looking information" as
defined under applicable securities laws ("forward-looking
statements"). These statements relate to future events or future
performance and reflect management's expectations, beliefs, plans,
estimates, intentions and similar statements concerning anticipated
future events, results, circumstances, performance or expectations
that are not historical facts, including business and economic
conditions and Canaccord Genuity Group's growth, results of
operations, performance and business prospects and opportunities.
Such forward-looking statements reflect management's current
beliefs and are based on information currently available to
management. In some cases, forward-looking statements can be
identified by terminology such as "may", "will", "should",
"expect", "plan", "anticipate", "believe", "estimate", "predict",
"potential", "continue", "target", "intend", "could" or the
negative of these terms or other comparable terminology. By their
very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and a number of factors
could cause actual events or results to differ materially from the
results discussed in the forward-looking statements. In evaluating
these statements, readers should specifically consider various
factors that may cause actual results to differ materially from any
forward-looking statement. These factors include, but are not
limited `to, market and general economic conditions, the nature of
the financial services industry and the risks and uncertainties
discussed from time to time in the Company's interim condensed and
annual consolidated financial statements, its annual report and its
annual information form ("AIF") filed on www.sedar.com as well as
the factors discussed in the sections entitled "Risk Management"
and "Risk Factors" in the AIF, which include market, liquidity,
credit, operational, legal and regulatory risks. Material factors
or assumptions that were used by the Company to develop the
forward-looking statements contained in this press release include,
but are not limited to, those set out in the Fiscal 2019 Outlook
section in the annual MD&A and those discussed from time to
time in the Company's interim condensed and annual consolidated
financial statements, its annual report and the AIF filed on
www.sedar.com. The preceding list is not exhaustive of all possible
risk factors that may influence actual results. Readers are
cautioned that the preceding list of material factors or
assumptions is not exhaustive.
Although the forward-looking statements contained in this press
release are based upon what management believes are reasonable
assumptions, there can be no assurance that actual results will be
consistent with these forward-looking statements. The
forward-looking statements contained in this press release are made
as of the date of this press release and should not be relied upon
as representing the Company's views as of any date subsequent to
the date of this press release. Except as may be required by
applicable law, the Company does not undertake, and specifically
disclaims, any obligation to update or revise any forward-looking
statements, whether as a result of new information, further
developments or otherwise.
___________________________
1 Adjusted earnings is a non-IFRS measure generally referred to by the Company as net
income excluding significant items. Refer to non-IFRS measures in the Company's MD&A.
Investor and media relations inquiries:
Christina Marinoff
Vice President, Investor Relations & Communications
Canaccord Genuity Corp.
+1-416-687-5507
cmarinoff@cgf.com
www.cgf.com/investor-relations