Montreal-based Fiera Capital Corp. has reached an agreement to purchase the fixed income, Canadian equity and domestic balanced account businesses of UBS Global Asset Management (Canada) Inc. for $52 million in cash, the investment firm said Tuesday.
The UBS Global AM businesses represent assets under management (AUM) of approximately $8 billion.
The transaction, which is subject to customary conditions, including regulatory approval, is expected to close in the first quarter of 2013, and will immediately be accretive to earnings, Fiera says.
“In addition to further strengthening its superior client-driven service approach, this transaction will reinforce Fiera’s leading position in asset management in Canada,” says Jean-Guy Desjardins, chairman and CEO of Fiera (TSX:FSX). “This acquisition will also further diversify Fiera’s Canadian client base and expand its global reach.”
Upon closing of the deal, Fiera Capital becomes Canada’s third largest independent asset manager with $63 billion in AUM, solidifying the firm’s position as one of Canada’s leading and fastest-growing asset management firms.
“We are pleased, through this transaction, to add additional depth to our strong investment and servicing teams, providing us with the talent to further innovate and develop tailored and competitive investment solutions in order to meet and exceed our clients’ diversified and evolving needs,” adds Desjardins.
Last month, Fiera closed the acquisition of Calgary-based Canadian Wealth Management Group Inc. (CWM) from Société Générale Private Banking. The CWM operations will be fully integrated into Fiera Capital Private Wealth’s existing business.