Canaccord Genuity Group has completed the acquisition of an additional 30% stake in its Australian capital markets and wealth management unit Canaccord Genuity (Australia).
The deal raises the Canadian group’s stake in the Australian business to 80% from 50%.
The group signed a non-binding letter of intent on the stake acquisition in June this year. At that time, the company estimated the deal to be valued at around A$36m ($26.2m).
The deal consideration included a cash payment of A$15m, a A$6m note, and the issuance of around 2.3 million Canaccord Genuity Group shares worth A$15m.
At the time of the deal announcement, Canaccord Genuity Group president and CEO Dan Daviau said: “This investment provides a stronger foothold to explore opportunities to expand our wealth management businesses and increase contributions from our capital markets business in the region.
“Our Australian team is well integrated into our global platform and has delivered very promising growth in recent years. We look forward to continuing to support their development initiatives in the region.”
Canaccord Genuity’s Australian capital markets business employs investment banking, research, sales and trading professionals in Australia and Hong Kong. The Australian wealth unit offers investment solutions from Melbourne and Sydney offices.
The group forayed into Australia in 2011 with the acquisition of a 50% stake in BGF Equities, which later adopted the Canaccord brand.