(October 4 – 18:30 ET) – IPC Financial Network Inc. says that it has completed the arm’s length purchase of certain assets of Fortress Equity Management Inc., a Burlington, Ont-based mutual fund dealer.
IPC has paid Fortress $560,000, subject to performance targets. The price consists of $308,750 in cash and 119,208 preferred shares in IPC at a deemed price of $2.10 a share.
The firm says it has also completed asset purchase agreements with three financial planners within its network. The three individuals involved in these transactions are Alan Michael Beaton, Ian Burns and Tony Richardson. In aggregate, IPC issued 235,647 common shares at a deemed price of $2.55 for a $600,900 total value in purchasing their books.
IPC says the acquisition of Fortress, which has offices in Burlington and Dundas, and buying reps’ books is consistent with its business plan and strategy. IPC is still intent on consolidating the fragmented financial planning industry.
IPC is also currently in the midst of closing a deal with ING Canada that will see it take 22% of IPC for a $7.5 million investment and a $25 million credit facility. A meeting to approve that deal is scheduled for October 16.
-IE Staff