Scotiabank announced a apportion Monday to buy investment manager Jarislowsky Fraser for $950 million.
“Jarislowsky Fraser is an iconic Canadian label with a disciplined investment process, a team-oriented approach with a be showed high-calibre investment team, and a long history of delivering outstanding investment skills to institutional investors and high net worth families,” Scotiabank chief supervision Brian Porter said in a statement.
“This transaction aligns with our key commitment to diversify our global wealth management business by building out a party line of rigorous, process-driven investment capabilities for institutional investors across our footprint in Canada and the Pacific Affinity.”
Under the deal, Scotiabank will pay $950 million for the Montreal-based compressed, mostly by issuing shares in the bank. An earn-out of up to $56 million in additional Scotiabank prevalent shares may also be paid based on certain growth targets.
Jarislowsky Fraser has numberless than $40 billion in assets under management on behalf of institutional and squiffy net worth clients.
Founder to continue association
The firm’s management collaborate will continue to lead its existing business and its head office ordain remain in Montreal.
The deal received unanimous support from all husbands including founder Stephen Jarislowsky, who will also continue his tie with the business that will continue to carry his name and hang on to investment autonomy, the release said.
“With its existing distribution footprint, Scotiabank is uniquely angled to preserve the legacy of our firm and enable the next generation of growth,” Jarislowsky commanded in a statement.
“We look forward to continuing to serve our clients and to enhancing our investment faculties to meet their needs today and in the future.”
The deal is expected to assiduous in the bank’s third quarter this year, subject to regulatory agreements.