CI Financial Corp. has reached an agreement to sell Blackmont Capital Inc. to Macquarie Group for $93.3 million, the independent wealth management firm said Monday.

Toronto-based Blackmont is a full-service investment dealer and its wealth management division supports a network of over 130 investment advisors who provide a range of services to retail clients.

The acquisition provides Macquarie with an established and growing Canadian wealth management business and will add additional retail distribution to Macquarie’s existing capital markets and product offerings in Canada, the Australia-based company says.

“Macquarie has been involved in the Canadian financial services market for 12 years and we’re attracted to the market’s well-established advisor model, its transparency and innovative product mix. We think there is a real opportunity in the Canadian market for a differentiated, independent client offering,” explains Peter Maher, global head of Macquarie’s banking and financial services group.

“This acquisition gives us the opportunity to work with a strong leadership and advisor team, build our client offering, add further quality advisors to our team and be seen as an innovative, independent provider with an international presence,” adds Maher.

Blackmont will become part of Macquarie’s banking and financial services group and will be rebranded Macquarie Private Wealth. The business will continue to be run by Blackmont CEO, Bruce Kagan while Macquarie executive director and former head of Macquarie Full Service Broking, Earl Evans, will relocate to Canada and become president of the business.

Through its team of over 2,800 staff globally, Macquarie’s banking and financial services group provides retail services to more than 850,000 clients with over $108 billion (Canadian) of client assets under advice, administration or management. The Group offers clients a diverse range of wealth management products and services including financial advice, mortgages, broking, online trading and private banking.

CI is retaining Blackmont’s capital markets division, which provides quality independent research, experienced equity sales coverage and specialized trade execution to institutional clients, and investment banking services to corporate clients.

“We are pleased to reach this agreement with Macquarie Group, a highly regarded global financial services company,” says Bill Holland, CI CEO. “Macquarie will provide an excellent home with strong support for Blackmont’s retail advisors, and foster the continued growth of their practices.”

“CI maintains a leading presence in the Canadian retail financial advisory business through Assante Wealth Management, one of Canada’s largest such firms with about 800 financial advisors,” Holland says.

“Meanwhile, Blackmont’s capital markets division remains a unique and important element in CI’s mix of businesses,” Holland adds.

CI expects the transaction to close on Dec. 31, 2009, subject to receipt of regulatory approval.

IE