Qtrade Financial Group and Desjardins Financial Corp. Inc. said Tuesday that the two companies have entered into a definitive agreement that will see Desjardins initially purchase between 25% and 40% of the outstanding shares of Qtrade from current security holders.

Based in Lévis, Que., Desjardins Group is the largest co-operative financial group in Canada with assets of nearly $200 billion and Vancouver-based Qtrade oversees approximately $7.5 billion of client assets.

Qtrade operates an online brokerage platform, but also provides wealth management services to the retail public and the customers of over 180 financial institutions, notably credit unions across Canada.

“We are committed to supporting greater unity in the Canadian cooperative landscape, and Qtrade Financial Group-s relationships with numerous credit unions, and its focus on promoting credit union success in wealth management, is perfectly aligned with our intentions,” said Monique F. Leroux, Chair of the Board, president and CEO of Desjardins Group, in a release.

The transaction is part of Desjardins’ strategic plan to grow its major business lines. Upon the arrangement becoming effective, Qtrade will continue to operate independently with current leadership and under its own brand name.

“Qtrade has an excellent online trading platform and an expertise which complements that of our subsidiary, Disnat. The activities of both entities give us a much stronger presence in online brokerage enabling us to best serve our members and clients,” said Denis Berthiaume senior vice president, wealth management and life and health insurance, Desjardins Group.

“Together we are entering a timely strategic partnership to continue our work accelerating Canadian credit union success in wealth management, including delivering products featuring socially responsible investing principles,” said Scott Gibner, CEO, Qtrade.

The required approvals have been received from the boards of both organizations for this transaction. Qtrade’s board of directors has recommended that Qtrade shareholders approve the arrangement and support has been received from a number of shareholders representing over three quarters of Qtrade shares outstanding.

A proxy circular will be mailed to all Qtrade shareholders in the coming weeks providing details about the arrangement which is expected to close during the second quarter of 2013.

Desjardins will have the right to acquire the majority of the remaining Qtrade shares over the next six years.