Industrial Alliance Insurance and Financial Services Inc. has agreed to acquire Sarbit Asset Management Inc. (SAM).

As part of the agreement, IA will acquire all of the issued and outstanding shares of SAM. IA has also entered into lock-up agreements with shareholders representing over 75% of the issued and outstanding shares of SAM .

Winnipeg-based SAM was founded in 2005 by Larry Sarbit, a money manager with over 28 years’ experience. Sarbit is recognized for his disciplined, value-oriented investment philosophy focussed primarily on U.S. equities.

The acquisition of SAM provides IA with approximately $130 million in assets under management, which will be integrated with IA Clarington Investments Inc., a subsidiary of IA.

Larry Sarbit and his investment team will continue providing investment advice to SAM’s U.S. equity funds after the transaction is completed, and the remainder of the Sarbit mutual funds will be managed by an affiliate of IA Clarington.

“Larry Sarbit is well known to financial advisors and investors in Canada,” says David Scandiffio, president of IA Clarington. “He has managed large mutual funds with assets in excess of $2 billion, as well as smaller funds, such as the $85 million Sarbit U.S. Equity Trust, and done so through a full range of market cycles. We are pleased that Mr. Sarbit has agreed to continue providing his unique style of investment advice to SAMI’s U.S. equity funds after completion of the transaction through an ongoing sub-advisory relationship.”

“The decision to sell the company I founded was not an easy one, but I am happy to have found a buyer such as IA that is firmly committed to meeting the needs of investors and financial advisors,” says Sarbit.

The transaction adds to IA’s string of wealth management acquisitions and marks the 14th transaction since the early 2000s.

Subject to requisite shareholder and regulatory notifications and approval, the transaction is expected to close on or before October 31.