Canaccord Capital Inc. today announced it has agreed to buy Adams Harkness Financial Group, Inc., a privately-held Boston, Mass.-based institutional investment bank, for US$20 million.

The acquisition will create Canaccord Adams, a new brand for Canaccord’s Global Capital Markets operations worldwide. This new group will combine the industry expertise, services and market reach of Canaccord Capital and Adams Harkness and enhance the company’s ability to serve the global small to mid cap market niche.

“We see our expansion into the United States as an extension of our niche approach. Partnering with the skilled professionals at Adams Harkness creates an exciting opportunity to provide a higher level of differentiated ideas and execution to our clients,” said Paul Reynolds, vice chair, head of Global Capital Markets at Canaccord Capital Inc. “The combined operations will enhance Canaccord’s global capabilities, expand and add balance to our sector coverage and further diversify our revenue base.”

“The marketplace for entrepreneurial companies has become global in scope and opportunity,” said John Adams, chairman, Adams Harkness Financial Group, Inc. “Both Canaccord and ourselves have observed this phenomenon with keen interest and we want to be in a position to exploit it for the benefit of our respective clients. We believe that we are first to market and we are committed to being the best. A long acquaintance with Canaccord has convinced us that we share a common culture as well as a common vision.”

The US$ 20 million in consideration will consist of US$8 million in cash and US$12 million in approximately 1.34 million common shares of Canaccord Capital Inc., which will come from a combination of shares acquired from selling shareholders and issuance of treasury shares. Shares will be held in escrow until June 30, 2008, with annual releases of one-third per year, beginning on June 30, 2006.

The deal, which is subject to regulatory approvals in Canada and the U.S. and approval by the shareholders of Adams Harkness, is expected to close before March 31.