Natixis Investment Managers said Thursday that it has agreed to acquire an 11% stake of Fiera Capital for C$128 million (U.S. $95 million) in a deal expected to close in the third quarter.
Natixis is acquiring a total of 10.68 million Class A subordinate voting shares of Fiera Capital from National Bank of Canada and DJM Capital. The latter company is controlled by Jean-Guy Desjardins, chairman, president and CEO of Fiera Capital, a Natixis news release said.
The acquisition is part of a long-term strategic distribution agreement through which Montreal-based Fiera Capital will become the preferred distributor in Canada of Paris-based Natixis' investment strategies, Natixis spokesman Ted Meyer said in an email.
Natixis also will offer Fiera Capital investment strategies through its investment platform.
The distribution agreement between the two money management companies is for five years with an initial three-year renewal, according to the news release.
As part of the deal, Fiera Capital, which managed $144.9 billion as of March 31, will acquire Natixis' Canadian operations and funds.
Mr. Meyer said Natixis' Toronto-based operations, including $1.8 billion of mutual fund assets, will become part of Fiera Capital and operate under its name, but will function as a separate legal entity, run by existing senior Natixis managers.
"This partnership with Natixis will further strengthen Fiera Capital's global leadership position as we continue to execute on our 2022 strategic plan to become one of the top 100 asset managers in the world," Mr. Desjardins said in the news release.
"Fiera Capital has an experienced team, a strong track record and a leading distribution network in Canada and this partnership will enable both firms to better serve our clients by offering a broader range of active investment strategies," Natixis Investment Managers CEO Jean Raby said.
Natixis managed $924.5 billion worldwide as of March 31.
