Macquarie Group has entered into an agreement to acquire Toronto-based Blackmont Capital, an independent, full service investment dealers from CI Financial, for CAD93.3m. Blackmont is expected to provide Macquarie with an established and growing Canadian wealth management platform
Macquarie said that Blackmont will become part of its banking and financial services group and will be rebranded as ‘Macquarie Private Wealth’. The business will continue to be run by Blackmont CEO, Bruce Kagan while Macquarie executive director and former head of Macquarie full service broking, Earl Evans, will relocate to Canada and become president of the business.
Peter Maher, global head of banking and financial services group at Macquarie, said: Macquarie has been involved in the Canadian financial services market for 12 years and we’re attracted to the market’s well-established advisor model, its transparency and innovative product mix. We think there is a real opportunity in the Canadian market for a differentiated, independent client offering.
This acquisition gives us the opportunity to work with a strong leadership and advisor team, build our client offering, add further quality advisors to our team and be seen as an innovative, independent provider with an international presence.
Bruce Kagan, CEO of Blackmont, said: Put simply, this transaction will enable us to deliver more to our people and clients. Macquarie brings to Blackmont a strong balance sheet, a commitment to growth, broad equity research and access to new products and proprietary deal flow. Their global knowledge and reach will help Blackmont advisors continue to set the new benchmark in terms of client service and offer more choice to the Canadian market.
The transaction is expected to close early in the first quarter of 2010 and is subject to regulatory approvals and other customary closing conditions.