RBC Dain Rauscher, Inc. and New Jersey-based J.B. Hanauer & Co. today announced the signing of a definitive agreement pursuant to which RBC Dain Rauscher Inc. will acquire J.B. Hanauer. Terms of the transaction were not disclosed.

The deal is subject to approval by U.S. and Canadian regulators and by J.B. Hanauer shareholders, and is expected to be completed in May 2007.

J.B. Hanauer, a privately held, employee-owned financial services firm, specializes in retail fixed income and wealth management services. It runs five offices in three U.S. states with slightly more than 300 employees and close to US$10 billion in assets under administration.

“J.B. Hanauer represents a strong strategic and cultural fit for our firm, significantly expanding our presence in New Jersey, Florida and Pennsylvania — all important markets for us,” said John Taft, chief executive officer of RBC Dain Rauscher.

“J.B. Hanauer has a 76-year history of providing clients with outstanding investment service,” said Barry Zucker, president and CEO of J.B. Hanauer. “Now, with the financial strength and full backing of RBC Dain Rauscher, we will be able to serve them even better.”

“The acquisition of J.B. Hanauer demonstrates RBC’s continued commitment to expansion in the U.S.,” added Taft. In 2006, RBC expanded in the U.S. through a number of acquisitions, including Flag Financial Corporation based in Atlanta; Carlin Financial Group of New York; Daniels & Co. of Denver; and American Guaranty & Trust of Wilmington, Del.

RBC Dain Rauscher Inc. is a wholly owned subsidiary of Royal Bank of Canada is one of the nation’s largest full-service securities firms.