Canadian asset manager Fiera Capital has agreed to acquire US-based private investment firm Apex Capital Management through its wholly-owned subsidiary Fiera US Holding for $145m.
Apex Capital manages $7.1bn in assets under management (AUM) as of 31 December 2015.
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Fiera Capital in a statement said that this acquisition will be more than double Fiera Capital’s presence in the US institutional and sub-advisory retail markets as well as boost its total AUM to over C$111bn.
Following the acquisition, Apex will become subsidiary of Fiera Capital’s US division.
Additionally, Nitin Kumbhani, founder and CEO of Apex will become vice chairman and chief of growth equity strategies for Fiera’s US division.
Under the terms of the deal, Fiera will initially pay Apex $88m in cash financed through a new $125m term loan and the issuance of $57m in Class A subordinate voting shares.
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By GlobalDataSubject to customary conditions, including applicable regulatory approvals and approval of the TSE, the deal is scheduled to close in April 2016.
The transition is expected to be immediately accretive and will add a 10% to 15% accretion to adjusted earnings per share within the first full year post closing.
Fiera Capital chairman and CEO Jean-Guy Desjardins said: "The acquisition of Apex is an important step in advancing our U.S. growth strategy by providing a meaningful complementary presence in the institutional and sub-advisory retail markets, small/mid cap (SMID), small cap and other growth strategies with a long track record of superior performance, and a proven team of investment professionals.
"The addition of Apex to our outstanding team enhances our strong global capabilities in equities for the benefit of our clients."
Kumbhani said: "Our products and approach will blend smoothly into Fiera Capital’s platform, and together we will provide enhanced opportunities to our mutual client bases."
Fiera Capital US division president and CEO Benjamin Thompson said: "This strategic acquisition adds complementary expertise to our platform and strengthens our ability to serve our clients across the U.S."
