Senior management of Patersons will continue to have “significant involvement and influence” in driving the growth and development of the combined business.
Canaccord Genuity Australia’s wealth management business will be known as CG Patersons and Michael Manford, Patersons’ executive chairman, will be the newly-established firm’s executive chairman.
“This transaction builds upon the work that our Australian partners have done to make Canaccord Genuity an increasingly stronger competitor in Australia ” said Dan Daviau, president and chief executive of Canaccord Genuity Group.
“The addition of Patersons supports our strategy of substantially increasing the scale of our wealth management operations and improving our business mix to deliver greater stability and long-term value for our clients and our shareholders.
“We look forward to supporting continued growth in Australia.”
Features of the deal
Following the closing of the transaction, Canaccord Genuity will implement an equity incentive programme for key Patersons employees.
The objectives of the plan are to “increase employee stock exposure and provide a link between strategic objectives, market practice and the established culture of ownership and entrepreneurialism while attracting, motivating, and retaining employees”.
The acquisition is expected to be completed during the financial quarter ending 31 December 2019.
The wealth management business of Patersons has more than 100 investment advisers with A$13.6bn in client assets under advice.
Founded in 1903, Patersons Securities offers investment management, financial planning, stockbroking advice and execution services for Australian mass-affluent investors.
The firm has locations in Western Australia, South Australia, Victoria, New South Wales, Queensland and Australian Capital Territory.