Fiera Capital will acquire Toronto-based investment manager CGOV Asset Management for C$114.2 million ($87.2 million) in a cash-and-stock deal, confirmed Fiera Capital spokeswoman Kaitlyn Nightingale in an email.
Under the terms of the deal, 42% of the purchase price will be paid in cash on closing while the remaining 58% will be paid in Fiera Capital stock.
The transaction is expected to close in the second quarter, subject to regulatory approvals. Once the deal closes, the majority of CGOV's partners and employees are expected to transfer over to Fiera Capital offices in Toronto as part of the Canadian private wealth group. Certain support roles will no longer be needed as these functions are already in Fiera Capital's existing infrastructure.
CGOV Asset Management manages traditional equity strategies.
"The transaction will provide a stable, long-term platform for our investment team to continue delivering value," said Don Cranston, founding partner and chairman of CGOV Asset Management, in a news release. "It will also bring robust investment solutions to CGOV clients, including access to enhanced fixed-income and private alternative strategies."
This news follows the announcement on March 1 that Fiera Capital agreed to acquire credit and special situations manager Clearwater Capital Partners for $21 million. In 2016, Fiera acquired private debt manager Centria Commerce, emerging markets equity manager Charlemagne Capital, growth equity firm Apex Capital Management, and the strategies and staff of hedge fund-of-funds and liquid alternatives manager Larch Lane Advisors.
CGOV had C$5.3 billion in assets under management as of Dec. 31, while Fiera had C$128.9 billion in AUM as of the same date.
Fiera Capital is working toward achieving a goal of having C$200 billion in AUM by 2020, and acquisitions are a key component of that growth strategy, said Ms. Nightingale.