Canaccord Financial has embarked a deal to acquire the wealth management business of Eden Financial, a UK private client investment management business, in an exercise to enhance its Collins Stewart Wealth Management.
Under the terms of the agreement, Canaccord is providing consideration of up to £12.8m in cash, of which £7.68m will be payable on completion of the deal and rest £5.12m after one year, which is subject to revenue retention and revenue mix thresholds.
Canadian asset manager said that incentives of up to £4m have also been set to reward further revenue growth and meeting revenue mix targets, said the acquirer.
Upon completion of the merger of Eden with Canaccord, it is believed that assets under management at Collins Stewart Wealth Management (Canaccord’s UK, Europe and offshore wealth management operations) will rise to nearly £9bn.
Canaccord UK and Europe operations CEO Alexis Rosnay said, "Our expanded client base will benefit from a wider variety of investment opportunities and the backing of an independent, global financial services company."
Eden will also change its legal name as Collins Stewart Wealth Management, although, Eden Financial will initially retain its brand.
It is anticipated that all of Canaccord’s UK, Europe, and international wealth management operations will be re-branded to Canaccord Wealth Management in 2013.
Eden Financial executive chairman Stephen Massey will join the board of Canaccord’s UK Wealth Management Company, Collins Stewart Wealth Management, and will continue to have management responsibility for the Eden team.
Based in London, Eden is an independent, owner-managed private client investment management business with £835m in assets under management on behalf of 2,500 clients as of 31 August 2012.