Business

CI Financial buying Sentry Investments for $780M

CI Financial Corp. has agreed to buy Sentry Investments Corp. in a friendly deal worth about $780 million, adding to its portfolio of mutual funds.

Sentry will remain a standalone brand, offering more than 45 mutual funds

CI Financial will pay $230 million of the purchase price in cash and the balance in shares to acquire Sentry Investments. (Canadian Press)

CI Financial Corp. has agreed to buy Sentry Investments Corp. in a friendly deal worth about $780 million, adding to its portfolio of mutual funds.

CI's assets under management will rise by 16 per cent to $140 billion when the deal closes, subject to regulatory approvals.

The companies say Sentry will remain a standalone brand, offering more than 45 mutual funds to the Canadian market.

CI Financial will pay $230 million of the purchase price in cash and the balance in shares.

The deal came as CI reported a second-quarter profit of $96.3 million or 37 cents per share, down from $128.6 million or 47 cents per share a year ago.

On an adjusted basis, CI earned $141.3 million or 54 cents per share in its latest quarter, up from $128.6 million or 47 cents per share in the same quarter last year.

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