Montreal-based Fiera Capital Corp. is boosting its presence in the U.S. with the acquisition of Dayton, Ohio-based Apex Capital Management for US$145 million in cash and stock.

Fiera reports that the purchase of Apex Capital, a U.S. growth equity fund management firm with approximately US$7.1 billion in assets under management (AUM) as of Dec. 31, 2015, will more than double the size of its U.S. institutional and subadvisory retail business and increase its total AUM to more than C$111 billion.

The deal is expected to close in April, subject to regulatory approval and other closing conditions. After closing, Apex will become part of Fiera’s U.S. division and the Apex’s founder and CEO, Nitin Kumbhani, will become vice chairman and chief of growth equity strategies for that division.

“The acquisition of Apex is an important step in advancing our U.S. growth strategy by providing a meaningful complementary presence in the institutional and subadvisory retail markets, small/mid cap, small cap and other growth strategies with a long track record of superior performance, and a proven team of investment professionals,” says Jean-Guy Desjardins, founder, chairman and CEO of Fiera, in a release announcing the deal.

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Fiera reports that the deal is expected to be immediately accretive to earnings, adding between 10% and 15% to adjusted earnings per share within the first year after closing. The price for Apex will be paid with US$88 million in cash and through the issuance of US$57 million in new class A subordinate voting shares.

The new shares will initially be held in escrow and will be released in equal increments over a seven-year period, beginning on the first anniversary of the closing. “This will allow for continued alignment of interests as Apex’s key employees are also shareholders,” Fiera’s statement says. The cash component will be financed through a new US$125-million term loan, which will mature three years from closing.

“Our team is excited to join Fiera, a rapidly growing independent investment-management firm recognized for its client focus and investment performance. Our products and approach will blend smoothly into Fiera’s platform, and together we will provide enhanced opportunities to our mutual client bases,” says Kumbhani in the statement.

“Apex’s expertise and top-quartile performance greatly enhance our presence in the U.S. marketplace with limited distribution overlap,” adds Benjamin Thompson, president and CEO of Fiera’s U.S. division. “This strategic acquisition adds complementary expertise to our platform and strengthens our ability to serve our clients across the U.S.”