CI Financial buying Sentry Investments for $780M
Sentry will remain a standalone brand, offering more than 45 mutual funds
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.