Scotiabank in $950M deal to acquire money manager Jarislowsky Fraser
Scotiabank will pay most of the acquisition cost in stock
Scotiabank announced a deal Monday to buy investment manager Jarislowsky Fraser for $950 million.
"Jarislowsky Fraser is an iconic Canadian brand with a disciplined investment process, a team-oriented approach with a proven high-calibre investment team, and a long history of delivering outstanding investment capabilities to institutional investors and high net worth families," Scotiabank chief executive Brian Porter said in a statement.
"This transaction aligns with our strategic commitment to diversify our global wealth management business by building out a platform of rigorous, process-driven investment capabilities for institutional investors across our footprint in Canada and the Pacific Alliance."
Under the deal, Scotiabank will pay $950 million for the Montreal-based firm, mostly by issuing shares in the bank. An earn-out of up to $56 million in additional Scotiabank common shares may also be paid based on certain growth targets.
Jarislowsky Fraser has more than $40 billion in assets under management on behalf of institutional and high net worth clients.
Founder to continue association
The firm's management team will continue to lead its existing business and its head office will remain in Montreal.
The deal received unanimous support from all partners including founder Stephen Jarislowsky, who will also continue his association with the business that will continue to carry his name and retain investment autonomy, the release said.
"With its existing distribution footprint, Scotiabank is uniquely positioned to preserve the legacy of our firm and enable the next generation of growth," Jarislowsky said in a statement.
"We look forward to continuing to serve our clients and to enhancing our investment capabilities to meet their needs today and in the future."
The deal is expected to close in the bank's third quarter this year, subject to regulatory approvals.