Business

Scotiabank buys doctors financial services company for $2.5 billion

Scotiabank is acquiring MD Financial Management, which provides financial planning, insurance, banking, investment and estate and trust services to Canadian doctors, for $2.5 billion.
Scotiabank's acquisition of MD Financial includes a 10-year deal that will see the Canadian Medical Association exclusively promote the bank as the preferred provider of financial products to physicians. (Nathan Denette/The Canadian Press)

Scotiabank has acquired doctors' wealth services company MD Financial Management for $2.5 billion.

The company provides financial planning, insurance, banking, investment and estate and trust services to Canadian doctors.

A public offering of 19.7 million common shares at $76.15 per share will fund a portion of the acquisition.

The acquisition also includes a 10-year deal that will see the Canadian Medical Association exclusively promote Scotiabank as the preferred provider of financial products to physicians.

Scotiabank has been on a spending spree in recent months, purchasing a 68 per cent stake in Chilean banking operation BBVA Chile, for $2.9 billion and Citibank's consumer and small and medium enterprise operations in January for an undisclosed amount.

It also bought Canadian investment manager Jarislowsky Fraser for $950 million in February and a controlling interest in Peru's Va Banco Cencosud for about $130 million in May.

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