Desjardins Group is the largest cooperative financial group in Canada with assets of nearly $200 billion and Qtrade Financial Group oversees approximately $7.5 billion of client assets. Qtrade is not only rated as a top online brokerage platform in the industry, but also provides wealth management services to the retail public and the customers of over 180 financial institutions, notably credit unions across Canada.
"We are committed to supporting greater unity in the Canadian cooperative landscape, and Qtrade Financial Group’s relationships with numerous credit unions, and its focus on promoting credit union success in wealth management, is perfectly aligned with our intentions," said Monique F. Leroux, Chair of the Board, President and CEO of Desjardins Group. "This partnership will provide a number of other benefits over time for our members and clients. For example, pooling our respective expertise and streamlining our processes, especially in the area of information technology, are key advantages in this ever-changing industry."
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The transaction is part of Desjardins’ strategic plan to grow its major business lines. Upon the arrangement becoming effective Qtrade, headquartered in Vancouver, will continue to operate independently with current leadership and under its own brand name.
"We are excited to partner with a fast-growing and dynamic business well supported by an experienced management team. Qtrade has an excellent online trading platform and an expertise which complements that of our subsidiary, Disnat. The activities of both entities give us a much stronger presence in online brokerage enabling us to best serve our members and clients," said Mr. Denis Berthiaume Senior Vice-President, Wealth Management and Life and Health Insurance, Desjardins Group.
"We are proud to partner with Desjardins, one of the world’s leading cooperative financial institutions, and to more directly participate in the Canadian credit union system. Together we are entering a timely strategic partnership to continue our work accelerating Canadian credit union success in wealth management, including delivering products featuring socially responsible investing principles," said Scott Gibner, CEO, Qtrade Financial Group.
The required approvals have been received from the boards of both organizations for this transaction. Qtrade’s board of directors has recommended that Qtrade shareholders approve the arrangement and support has been received from a number of shareholders representing over three quarters of Qtrade shares outstanding. A proxy circular will be mailed to all Qtrade shareholders in the coming weeks providing details about the arrangement which is expected to close during the second quarter of 2013, and remains subject to customary closing conditions including court, shareholder and regulatory approvals. Desjardins will have the right to acquire the majority of the remaining Qtrade shares over the next six years.
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