The deal is part of GMP Capital’s new strategy to make wealth management as the centrepiece of its growth strategy
Missouri-based investment bank Stifel Financial has completed the acquisition of capital markets business of Toronto-based GMP Capital.
The deal was previously announced in June this year. As per the agreement, Stifel acquired the bulk of capital markets business from GMP Capital in a cash deal, which included the then tangible book value of the business plus CAD45m ($34m) premium.
With the deal now closed, GMP CEO Harris Fricker and other key personnel will join Stifel Financial.
Stifel chairman and CEO Ronald J. Kruszewski said: “We are building a premier investment bank focused on the middle market and this is yet another extension of executing on that strategy.
“The addition of GMP Capital’s talented individuals expands our global business model into the vibrant Canadian market with a focus on technology, healthcare, cannabis, and energy verticals. We are excited to welcome Harris Fricker and his team to Stifel.”
GMP’s capital markets business serves corporate clients and institutional investors
GMP’s capital markets business offers corporate clients and institutional investors a wide range of investment banking services, including equity capital raising, mergers & acquisitions expertise, institutional sales and trading and research services through offices in Canada and the UK.
Founded in 1995, it is now considered as one of the leading players in all aspects of small- to mid-cap segments of the Canadian capital markets.
GMP Capital interim president and CEO Kish Kapoor said “The successful closing of the Sale Transaction significantly advances our efforts to transform GMP into a pure-play, publicly traded wealth management company, as the demand for face-to-face advice continues to grow.
“The next phase includes pursuing significant opportunities in wealth management and continuing discussions with Richardson Financial Group Limited with a view to consolidate 100% of ownership in Richardson GMP into GMP.”
The sale of capital markets business is part of GMP’s plans to make wealth management the centrepiece of its growth strategy going forward. Accordingly, it is in discussions with Richardson Financial Group (RFG), the management of Richardson GMP and the representatives of the investment advisors on Richardson GMP’s board to acquire 100% of Richardson GMP.
Richardson GMP is one of Canada’s independent wealth management firms, with CAD30bn ($22.6bn) in client assets, generating an adjusted earnings before interest, taxes, Depreciation and amortization (EBITDA) of more than CAD45m ($33.9m).
GMP will continue offering brokerage services to Richardson GMP and Stifel Canada under the name of RF Securities Clearing.