Scotiabank signaled a deal 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 corroborated high-calibre investment team, and a long history of delivering outstanding investment proficiencies to institutional investors and high net worth families,” Scotiabank chief head honcho Brian Porter said in a statement.
“This transaction aligns with our crucial commitment to diversify our global wealth management business by building out a policy of rigorous, process-driven investment capabilities for institutional investors across our footprint in Canada and the Pacific Union.”
Under the deal, Scotiabank will pay $950 million for the Montreal-based inflexible, mostly by issuing shares in the bank. An earn-out of up to $56 million in additional Scotiabank universal shares may also be paid based on certain growth targets.
Jarislowsky Fraser has various than $40 billion in assets under management on behalf of institutional and spaced out net worth clients.
Founder to continue association
The firm’s management combine will continue to lead its existing business and its head office require remain in Montreal.
The deal received unanimous support from all participants including founder Stephen Jarislowsky, who will also continue his bond with the business that will continue to carry his name and remember investment autonomy, the release said.
“With its existing distribution footprint, Scotiabank is uniquely point of viewed to preserve the legacy of our firm and enable the next generation of growth,” Jarislowsky judged in a statement.
“We look forward to continuing to serve our clients and to enhancing our investment talents to meet their needs today and in the future.”
The deal is expected to termination in the bank’s third quarter this year, subject to regulatory put ones imprimatur ons.