Investors Group Inc. is taking over IPC Financial Network Inc. in a deal valued at between $88 million and $106 million.

The Winnipeg based mutual fund firm is paying $1.95 per share for the Toronto-based financial planning firm, whose stock closed Tuesday at $1.60.

The agreement announced Wednesday, structured through a company to be known as IPC Holdco, will leave Investors Group with between 70% and 85% of IPC Holdco.

Steve Meehan, IPC CEO, and Chris Reynolds, IPC’s president, will each own 7.8% , and up to 14.5% will be held by IPC financial advisors and other management members.

“On closing, Investors Group Inc. will have $88 million to $106 million invested in the equity of IPC Holdco,” the companies stated.

IPC will be operated as a separate entity and will be managed by its current leadership team.

“I could not be more delighted with this transaction,” said Meehan in a news release. “We have ensured that IPC, its financial advisors, and staff will now be part of an organization that will be on the Canadian wealth management landscape for many years to come.”

“IPC will be able to further strengthen its commitment to its financial advisors by leveraging off the vast resources of Investors Group Inc. and Power Financial, yet still continue to develop as a separate and distinct organization in the independent wealth management channel,” said Reynolds.

Founded by Messrs. Meehan and Reynolds in 1996, IPC is the fifth largest financial planning organization in Canada with $7.1 billion of client assets under administration and $1.2 billion of mutual fund assets under management. It has a network of over 600 financial advisors.

The board of directors of IPC has unanimously approved the transaction and has agreed to recommend that shareholders vote in favour of the transaction.

Shareholders owning or controlling 54% of IPC’s outstanding shares (including Steve Meehan, Chris Reynolds and ING Canada Inc.) have agreed to irrevocably support the transaction.