Minority shareholders of IDC will receive a portion of the total value of the deal. Credit: geralt from Pixabay.

Desjardins Group has inked definitive agreements to purchase Guardian Capital Group’s Worldsource brand of mutual fund, investment distribution and insurance businesses for C$750 ($552m).

The deals include Guardian’s insurance arm IDC Worldsource Insurance Network (IDC), mutual fund dealer Worldsource Financial Management (WFM) and a full-service investment firm Worldsource Securities (WSI).

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

These three units currently cater to over 5,000 independent advisors in Canada’s insurance and financial advice industries.

The move will help Desjardins to have over $2bn in life insurance premiums as well as $43bn in assets under administration in the sectors of mutual funds, segregated funds and securities.

As part of the transaction, minority shareholders of IDC will receive a portion of the total value of the deal.

Once the deal is closed, Desjardins will run the acquired entities as stand-alone businesses, which will continue to be headed by their existing management and employees, stated the firm.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Subject to customary closing conditions, such as regulatory approvals, the deal is scheduled to be completed by the first quarter of next year.

Desjardins Group president and CEO Guy Cormier said: “This acquisition strengthens Desjardins in the important life insurance and wealth management sectors across Canada.

“On the insurance side, it extends our market reach and positions us as a leader in life insurance independent distribution in Canada. On the financial advisory side, the mutual fund and securities dealers will enhance and strengthen our distribution of retail investment products.

“With this added bench strength, Desjardins will be able to serve more Canadians and achieve critical mass to generate the financial flexibility to innovate and invest to better meet the needs of our members, clients and advisors.”