Canaccord Genuity Group has agreed to buy Australia-based Patersons Securities in a cash deal worth A$25m ($17.3m).
The transaction will be executed through Canaccord Financial Group (Australia), the Australian arm of Canaccord Genuity.
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Patersons offers a range of services covering wealth management and capital markets.
The firm posted net income and net revenue of A$3.2m and A$61.8m, respectively, for the year ended 30 June 2018.
Its wealth management arm has A$13.6bn in assets under advice and employs over 100 investment advisers.
The firm’s senior management will remain involved in the business.
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By GlobalDataThe wealth management unit of Canaccord Genuity Australia will operate under the CG Patersons brand upon deal completion that is expected by this year-end.
Patersons executive chairman Michael Manford said: “The rationale for joining Canaccord Genuity is compelling and provides additional breadth and depth of services for our clients, who will benefit from access to globally integrated wealth management, corporate finance and equity research capabilities.”
Manford will retain his existing role at the combined group.
The deal is pending shareholder and regulatory nod.
Canaccord Genuity Australia CEO Marcus Freeman said: “This business combination creates a leading Australian capital markets, stockbroking and wealth management business with a powerful offering for our respective corporate, institutional, and private clients.
“The cultural alignment between the two teams has been clear from our first interaction and has been the foundation for all discussions.”
The transaction continues the recent buying spree of Canaccord Genuity.
Earlier this year, the group announced the acquisitions of McCarthy Taylor, Petsky Prunier, and Thomas Miller Wealth Management.
