Canaccord Financial, a Canada-based independent, full-service financial services firm, has agreed to acquire a 50% equity interest in Australian independent securities advisory firm BGF Capital Group, commonly known as BGF Equities.
BGF Equities will now be re-branded Canaccord BGF. This acquisition is expected to expand Canaccord’s operations into Australia and Hong Kong.
Canaccord will pay AUD$40m in cash, subject to TSX approval, Canaccord’s common shares.
In connection with its investment, Canaccord will have the right to appoint three of the six directors of Canaccord BGF, and will have customary approval rights with respect to certain fundamental matters.
The new combined business will provide an expanded offering of investment banking, sales and trading, research and wealth management services to corporate, institutional and private clients in the Asia-Pacific region.
It will benefit from Canaccord’s global operations and distribution.
Keefe, Bruyette & Woods acted as financial advisor to Canaccord on the transaction.
The transaction is expected to close in the fourth quarter of 2011.