Canada-listed Fiera Capital Corporation has agreed to buy the Canadian fixed income, Canadian equity and domestic balanced account business of UBS Global Asset Management (Canada), with some $8 billion assets under management, for $52 million in cash.
Upon closing, the transaction will make Fiera the third largest independent asset manager in Canada, with $63 billion assets under management, and will be immediately accretive to earnings, the firm said.
The transaction is subject to customary closing conditions, including regulatory approval, but is expected to close in the first quarter of 2013.
Only earlier this month Fiera completed its acquisition of a unit from another well-known European bank, buying Canadian Wealth Management from Société Générale Private Banking. Calgary-based Canadian Wealth Management serves high net worth individuals, families, endowments and foundations in western Canada, and will be integrated into Fiera Capital’s private wealth platform.
“Our first priority will be ensuring that our existing clients are fully satisfied. Next, we plan to expand Fiera Capital’s private wealth platform in Alberta and across western Canada," said Paul Vaillancourt, chief executive and chief investment officer of CWM.
“Expanding our presence in western Canada has been a key strategic priority for some time now and CWM, along with its highly skilled team of professionals, provides an excellent base from which to accelerate our growth in the region,” said Merri Jones, executive vice president at Fiera.
Meanwhile, Canada "continues to be an important market for UBS Global Asset Management," said the asset manager's head of Americas, Shawn Lytle. However, the firm has decided to focus in Canada on global traditional and alternative capabilities.
"We believe this positions us best to provide the solutions that our clients need and are the areas where we continue to see strong demand. Our firm has a long history in both Toronto and Montreal and we will maintain our presence to service our Canadian clients," added Lytle.
Fiera Capital is based in Montreal, and also has offices in Toronto, Vancouver, Halifax and Boston. Its clients include HNW individuals, pension funds, foundations, religious and charitable organizations, financial institutions, mutual funds and managed asset platforms. It runs alternative investment strategies with assets under management of approximately $500 million.