IGM Financial Inc. today announced that it has entered into definitive agreements with Saxon Financial Inc. to acquire all the common shares of Saxon by way of a takeover bid with the support of Saxon’s board of directors.

IGM Financial has also entered into lock-up agreements with principal shareholders of Saxon, CMA Holdings Inc., Bob Tattersall and Rick Howson, by which they have agreed to tender their shares representing approximately 45.4% of Saxon’s outstanding common shares.

Saxon shareholders will be offered $21 per Saxon share payable in cash. Once the takeover bid is completed, Saxon will become a part of Mackenzie Financial Corp.

The acquisition provides Mackenzie with approximately $13 billion in investment advisory mandates to a number of mutual fund, institutional, and high net worth investors.

Saxon is well-known for its disciplined value investment philosophy in the management of Saxon Mutual Funds, established in 1985. Saxon’s institutional and private client businesses operate under the brand name of Howson Tattersall.

Saxon has a strong relationship with CMA Holdings, and particularly, MD Financial, a subsidiary of CMA Holdings. Mackenzie will enter into long-term agreements with CMA Holdings and MD Financial designed to continue and strengthen these relationships.

“We believe that this acquisition enables us to enhance our offering to advisors and clients. Saxon has a proven capability in value-oriented equity and fixed income investing across the retail, institutional and high net worth client segments,” says Charles Sims, president and CEO of Mackenzie and co-president and CEO of IGM Financial.“

IGM Financial says both Howson, chief investment officer of Saxon, and Tattersall, the firm’s president & CEO, have agreed to continue with the combined organization and will actively lead the Howson Tattersall investment management team through 2010 and oversee their personal succession plans announced in 2005.

“This is a great opportunity for Saxon shareholders to realize significant value from their investment,” says Tattersall. “We see Saxon’s goals as being aligned with those of Mackenzie.”

The offer will be made by a formal takeover bid circular, which is expected to be mailed to Saxon shareholders in mid-August. The transaction is anticipated to close on September 30, subject to required regulatory notifications and approvals.

IGM Financial Inc., with $116.8 billion in total assets under management, carries out it activities through Investors Group, Mackenzie Financial Corp. and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Corp. group of companies.

Saxon Financial has three principal businesses: Saxon Funds Management Ltd.; Howson Tattersall Investment Counsel Ltd.; and Howson Tattersall Private Asset Management Inc., a private client asset management business.