Canaccord Genuity Group Inc. announced April 15 that it has entered into an agreement with the Royal Bank of Scotland plc to acquire the private client investment management business of Edinburgh-based, Adams & Company.
“The acquisition is expected to be accretive to the company’s adjusted earnings,” the company said in a statement announcing the deal. According to the announcement, the company, through a business transfer agreement, will pay a cash consideration of £54-million or C$94.9-million to acquire the shares of Adam & Company Investment Management Limited, along with assets from the bank, including the Adam & Company brand, intellectual property and client contracts.
The private client investment manager has average assets under management worth approximately £1.6-billion (C$2.8-billion), which are managed on a discretionary basis. The business includes an experienced team of portfolio managers with direct responsibility for client relationships. A retention plan will be implemented for key employees based on client assets and continued employment over a four-year period. During the year ended December 31, 2020, Adam & Company generated revenue of approximately £12.5-million or C$21.6-million.
Going forward, Adam & Company managers will have access to Canaccord Genuity’s resources and expertise in global and small cap equities, environmental, social and governance (expertise), fixed income and the company’s suite of retirement, later life care and inheritance tax planning capabilities. “To help facilitate this, Adam & Company’s investment team will become active members of the company’s UK investment committees,” they write.
“The acquisition represents a unique opportunity for Canaccord Genuity Wealth Management to enter the Scottish market with a deeply established franchise and a strong brand,” says the company. “(Canaccord Genuity UK) intends to continue to operate the business under the name of Adam & Company. The business’s core client proposition will remain largely unchanged and the existing direct relationships between clients and portfolio managers will not be affected.”
The acquisition is expected to be completed during the quarter ended September 30, 2021, the second fiscal quarter of Canaccord Genuity’s 2022 fiscal year.