Canaccord Financial Inc. (TSX: CF) announced on Friday the completion of its acquisition of Genuity Capital Markets.

“This acquisition is a significant milestone in Canaccord’s evolution. It solidifies our market position in Canada and provides a stronger base for our continued expansion,” said Paul Reynolds, president and CEO of Canaccord Financial Inc.

The firms’ capital markets businesses will be fully integrated beginning May 10, 2010.

The completion of the acquisition follows a special meeting held Thursday, where shareholders of Canaccord voted 99.8% in favour of the acquisition.

In March, Canaccord announced plans to acquire 100% of Genuity for 26.5 million of its common shares and $30 million in cash. In addition, the vendors will receive up to $28 million as a working capital adjustment subsequent to closing.

All of the Canaccord common shares issued as part of the purchase price were placed in escrow at closing and will be released ratably over five years. Genuity’s 10 largest partners have entered into employment, non-competition, non-solicitation and standstill agreements. Virtually all of the other Genuity partners became Canaccord Genuity employees on closing.

Upon closing, Canaccord welcomed David Kassie and Philip Evershed, two nominees of the existing Genuity partnership, to its board of directors. David Kassie was also appointed to serve as Canaccord’s Group chairman, while Peter Brown will serve as chairman and founder.

The chief officers of Canaccord Financial Inc. remain the same, with Paul Reynolds, Mark Maybank and Brad Kotush continuing as president and CEO, chief operating officer, and chief financial officer, respectively.

IE