Mackenzie Financial will be acquired by Investors Group for C$4.15 billion (US$2.8 billion) in cash and stock, according to James Hunter, Mackenzie CEO. Investors Group is Canadas largest mutual fund company; Mackenzie is the fifth largest. The combined firm will have about C$85 billion in assets and 2 million clients.
Investors Group is paying the equivalent of C$30 per share for all of Mackenzies stock. About 77% of the purchase price will be paid in cash.
The takeover battle for Mackenzie began in November when C.I. Fund Management launched an unsolicited bid valued at C$28.24 per share of Mackenzie. According to Mr. Hunter, Mackenzies executives then began soliciting a number of "strategic partners they felt would be a better merger partner than C.I. After several months of talks, they recommended Investors Group to the Mackenzie board of directors, which approved the deal.