National Bank of Canada has acquired mutual fund manager and distributor Altamira Investment Services Inc.

By doins so, National Bank has achieved its goal of increasing its presence outside Quebec in the area of wealth management. It has also doubled its mutual funds under management to $10.4 billion.

The purchase price will be between $277.1 million and $314.1 million for all classes of shares based on assets under management at closing. A portion of the purchase price may be paid in common shares up to a maximum of three million shares. In addition, National will assume Altamira’s debt of $195.9 million.

The value of the transaction represents approximately 9.5% of Altamira’s risk-weighted assets under management. The Altamira acquisition will have no impact on the bank’s financial results in fiscal 2002 and should add 4¢ to earnings per share in 2003 and around 10¢ in 2004, when the transition is complete and synergies take full effect.

The transaction was approved this morning by the bank’s Board of Directors. It is expected to close on or about August 12, or earlier, provided all closing conditions are met, including approval from regulatory authorities. The transaction will generate additional revenues by offering National Bank products to Altamira clients and vice versa.

“The acquisition of First Marathon in 1999 was a great success, allowing the National Bank to penetrate a new market and gain access to new clients,” says Real Raymond, president and CEO of National Bank of Canada. “This latest acquisition will contribute to our growth and profitability in much the same way,” says Raymond.

Michel Tremblay, National Bank senior vice president, Personal Banking and Wealth Management, will become chairman of the board of Altamira. “This change in ownership will in no way diminish the relationship that Altamira already enjoys with its clients — it may even improve it,” says Tremblay.