(August 3 – 11:45 ET) – ING Canada and IPC Financial Network Inc.say they intend to form a strategic alliance for the purpose of building a leading wealth management business.

ING says it will invest in IPC by a combination of treasury share purchase, and the provision of a credit facility of $25 million for acquisitions. It will also swap ownership of ING’s AFP Financial Holdings Inc. for shares of IPC. AFP Financial’s primary holding is AFP Wealth Management, a mutual fund distribution company.

ING will own about 22% of the shares of IPC by the time the transaction closes this fall, pending approval from regulators, the ING board and IPC shareholders. ING can increase its holding of outstanding IPC shares to a total of 35% within four years.

Together, IPC and AFP Wealth Management will have approximately $7 billion of assets under administration and more than 900 financial planners and agents across the country. Under the arrangement, AFP planners and agents will gain marketing and operational support from IPC. The IPC will also have direct access to the portfolio of financial products ING is building in Canada.

“We are extremely excited about this transaction,” Steve Meehan, CEO of IPC, said in a statement. “This alliance provides IPC with the sponsorship of a global leader that brings a depth of resources to the table. Furthermore, AFP Wealth Management adds to our overall assets under administration and has a strong presence in regions where IPC has had limited representation.”

Claude Dussault, president and CEO of ING Canada Brokerage Networks added, “We are impressed with IPC’s business model and believe it is an excellent fit with our approach to business. ING is committed to being a major player in the wealth management business in Canada and this alliance with IPC allows us to take a significant step forward in realizing this goal.”
-IE Staff