Montreal-based National Bank of Canada agreed on Thursday to acquire TD Waterhouse Institutional Services, with headquarters in Toronto, through subsidiaries.

National Bank (TSX:NA) will acquire the business for $250 million subject to a price adjustment mechanism based on asset retention.

TD Waterhouse Institutional Services provides similar back office solutions services including, custody, trading, clearing, settlement and record keeping, for Canadian-based registered portfolio managers and introducing brokers as National Bank’s Correspondent Network.

“Our Correspondent Network is today a leader in Canada’s wealth management landscape as a provider of services which support over 140 independent market intermediary portfolio managers, brokers and dealers, who collectively serve over 350,000 client accounts and manage client assets of over $50 billion,” said Luc Paiement, co-president and co-chief executive officer, National Bank Financial and executive vice-president, wealth management. “Through this acquisition, we will extend our reach by adding over 260 additional market intermediaries who serve over 130,000 client accounts and manage approximately $34 billion in assets.”