Toronto-based Difference Capital Financial Inc. (TSX:DCF) is reshuffling its management and corporate structure, the firm announced on Tuesday

Henry Kneis, formerly CFO and COO, will immediately assume the role of CEO, DCF says, and Michael Wekerle, formerly CEO and executive chairman of DCF, will now serve as chairman of the company.

DCF also announed it has entered into agreements to acquire Difference Capital Inc. (DCI) for about $2.4 million, DCF says, and to terminate its management agreement with Difference Capital Management Inc. (DCM)

The acquisition is expected to close on June 23, after which DCI will be wound down, DCF says.

All of DCI and DCM’s employees will become employees of DCF, including DCI’s vice president of finance, Victor Duong, who will take over as CFO of DCF.

A special committee of the DCF board negotiated the terms of the acquisition, which, it says, will give the board increased oversight of the firm, and reduces taxes, among other benefits.

The decision to internalize management was made to “provide investors with improved transparency into the operations of the corporation while enhancing the alignment of interests by having all activities within a single entity,” the committee says.

The committee received a fairness opinion from one of the top four global accounting and consulting firms supporting the deal, which has been approved by the Toronto Stock Exchange.

“The internalization of management through the acquisition of DCI and termination without penalty of the management agreement continues a process that we began in the summer of 2014 to simplify the organization, streamline the portfolio, and consolidate the professional staff,” says John Albright, lead independent director of DCF.

“Given the refinement of our strategy over time, the decision to become an internally managed company is a natural progression and one designed to drive long-term shareholder value,” Albright adds.

“Our senior leadership team, led by Henry Kneis, Tom Astle, and Tom Liston, has made significant progress reorienting our portfolio toward quality pre-IPO names. The internalization will allow DCF to operate with better board support and oversight,” Albright says.

DCF invests in and advises growth companies.