Managing general agencies (MGAs) Financial Horizons Inc. and Audis Canada Ltd. have signed letters of intent to join forces, the companies announced on Wednesday.

Under the deal, Kitchener, Ont.-based Financial Horizons will purchase 100% of the shares of Winnipeg-based Audis Canada in exchange for cash and shares in Financial Horizons’ parent company, Granite Global Solutions. The transaction is expected to close by Oct. 31, 2012.

Audis is one of the largest MGAs in Western Canada, representing more than 1,000 independent financial and insurance advisors. It has offices in Winnipeg and Calgary.

Once the deal is complete, Financial Horizons Inc. will have more than 5,500 brokers, more than $4.2 billion in segregated fund assets and more than $300 million of life premium in force.

“This is another major step in the growth of Financial Horizons,” said John Hamilton, president and CEO of Financial Horizons. “The addition of Audis gives the company representation across Canada.”

Financial Horizons operates with three divisions in Canada: an Ontario and Atlantic division; a Quebec division; and a Western Canada division. Dan Powell, president of Audis Canada, will act as president of the Western Canada division.

The management team, office locations, and staff of Audis Canada will essentially remain unchanged, the companies said. For the immediate future, Audis will continue to operate under the Audis Canada banner.

“This is a very positive move for our brokers,” said Powell. “I have been looking for an organization that shared my priority of providing our brokers with the best service in the industry and Financial Horizons shares that priority. This is a great opportunity for all of the Audis staff and brokers, and it further enhances our relationships with the life companies.”