(September 15 – 09:00 ET) – BRM Capital Corp., the firm that agreed to buyout financial planning giant Regal Capital Planners Ltd. and The Investment Centre, last week, is buying Balanced Planning Financial Group from Equisure Financial Network Inc.
Equisure will receive between $22 million and $24 million in cash for the Ottawa-based fund firm, which is expected to close October 29. The deal will be partly funded by a $40 million private placement of BRM convertible notes which will be convertible into BRM common shares at a conversion price of69¢ per share.
Balanced has more than 950 financial advisors and $2.7 billion in assets under administration. Assuming all these deals close BRM will have 2,400 advisors and $12.7 billion in assets under Balanced, Regal, The Investment Centre and BRM’s existing dealer arm, Vancouver-based Great Pacific Management Co..
Equisure bought Balanced back in March 1997 but now says it is no longer critical to its strategy; the push to consolidation in the fund dealer industry meant it could get a premium for Balanced; and it will make it easier to justify selling no- and low-load new mutual funds through its new web site, moneyramp.com.
– IE Staff