Natixis Global Asset Management has completed indirect acquisition of all the outstanding common shares of NexGen Financial for consideration consisting of CA$7.25 cash per common share, for an enterprise value of approximately CA$35m.
"NexGen does business with more than 1,600 financial advisors and more than 100 dealers throughout Canada, and we look forward to building on this strong foundation – bringing sophisticated, customized solutions to investors seeking to achieve their goals through durable portfolio construction."
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The Arrangement was approved by shareholders of NexGen at a special meeting held on December 17, 2014. The Ontario Superior Court issued a final order approving the Arrangement on December 18, 2014.
NexGen’s shares which are subject to a trading halt, are expected to cease trading and be de-listed from the TSX Venture Exchange on December 22, 2014. Applications will be made for NexGen to cease to be a reporting issuer in the applicable jurisdictions.
NexGen is recognized for offering tax-efficient wealth management strategies. Their patent pending proprietary mutual fund structure is designed to achieve a number of tax-planning objectives that are not publicly offered by any other Canadian mutual fund company.
The acquisition will expand NexGen’s existing mutual fund platform and bring an even greater selection of products for a well-diversified portfolio to Canadian investors.
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By GlobalData"We are pleased that the transaction is complete, and we are eager to begin working as a part of the Natixis team," said Abe Goenka, NexGen co-CEO. "This is a great opportunity to work with some of the most respected asset managers in the world to provide even better results for our current clients and increase our capabilities in an extremely competitive marketplace."
The Arrangement constitutes a change of control of NexGen Financial Limited Partnership, the manager of the NexGen mutual funds, effective today. A notice to investors was sent to each securityholder of the NexGen mutual funds on November 19, 2014 and securities regulatory approval was obtained on December 12, 2014.
In keeping with the Natixis multi-affiliate business model, NexGen will operate autonomously with the existing senior management team. There are no immediate plans to make staffing changes or changes to the NexGen business model.
