Mackenzie Financial Corp. and its majority-owned subsidiary Mackenzie Investment Management Inc. today announced they have entered into an agreement with U.S.-based Waddell & Reed Financial, Inc. respecting the sale of MIMI.

The deal is valued at US$74 million, subject to price adjustments at closing. The transaction is expected to close in December, and is also subject to regulatory approval.

The value of Mackenzie’s interest is US$63 million payable in cash. The transaction has been priced in U.S. dollars.

In a statement, Mackenzie said the decision to sell MIMI is part of the company’s strategy to focus on its core Canadian distribution operations and the needs of Canadian independent financial advisors and their clients. Mackenzie plans to retain Waddell & Reed to sub advise on selected Mackenzie funds distributed in Canada.

“We entered into discussions with Waddell & Reed after a very careful examination of the opportunities for growth for MIMI and our product line,” said Keith Carlson, president and CEO, MIMI, in a release.

Under the agreement, Waddell & Reed will acquire MIMI’s entire operation including management of its U.S.-based mutual funds representing approximately US$756 million assets under management as at July 31, 2002.

With respect to MIMI’s U.S. business, Waddell & Reed said it expects to maintain the U.S.-Ivy Fund brand and use it for U.S. retail non-proprietary load fund distribution, including existing U.S.-based Ivy Funds and future funds sub advised by Waddell & Reed and its affiliates using the U.S. Ivy brand.