London-based Eden Financial currently has GBP835 million (US$1.36 billion) in assets under management (AuM).
The move sees Canaccord stretch its total AuM in UK & Europe Wealth Management operations – also known as Collins Stewart Wealth Management (CSWM) – to GBP9 billion.
The acquisition, subject to FSA approval, will cost Canaccord GBP12.8 million in cash.
Of this, GBP7.68 million will be paid on completion and the remaining GBP5.12m after 12 months, subject to revenue retention and revenue mix thresholds.
Continued revenue growth and the meeting of revenue mix targets will be rewarded with further incentives of up to GBP4 million.
Eden Financial – an independent, owner-managed company currently serving 2,500 clients – has established itself as a major player in the UK wealth management industry.
The Canadian firm said it hoped that the addition of Eden’s client base will allow it to leverage opportunities arising from the consolidation of the UK industry, as well as providing stronger services to CSWM.
On completion of the deal Eden Financial will change its legal name to Collins Stewart Wealth Management Limited.
Source: Private Banker International