AGF Management Ltd. has signed a definitive purchase agreement to acquire approximately 80% of Highstreet Partners Ltd., which wholly owns Highstreet Asset Management Inc., an investment counsel firm based in London, Ont. Highstreet has $4.8 billion in assets under management.

Highstreet will join AGF’s private investment management group of companies (AGF PIM), and Highstreet’s CEO, Rob Badun, will join AGF’s executive team as president of AGF Private Investment Management Ltd.

Highstreet’s current management team will continue to own approximately 20% of Highstreet.

Upon completion of the transaction, AGF PIM will manage more than $11 billion in institutional and private client assets. AGF’s total AUM will rise to $46 billion. The transaction is expected to close December 1. Financial terms were not disclosed.

“Highstreet is an outstanding acquisition for AGF. It provides us both executive leadership and complements our investment management expertise,” said Blake Goldring, chairman and CEO, AGF. “The hallmark of our recent acquisitions has been growth, through strategic synergies with our operations. We expect Highstreet will extend our record of success.”

Rob Badun commented “Joining forces with AGF will enable Highstreet to achieve new levels of growth, while we continue to provide our clients the investment and service excellence they expect. I look forward to working with the AGF PIM firms to develop a vision and strategy for maximizing growth and capitalizing on synergies. I know we can achieve excellence for our clients through PIM’s focus on people, philosophy and process.”

Highstreet uses a proprietary quantitative investment process that has proven to consistently outperform the market while protecting capital in down markets. The Highstreet Canadian Equity pooled fund has outperformed the S&P/TSX every year since 2000. Highstreet’s ability to deliver investment management excellence will not change with this transaction.

Highstreet’s unique investment style and strong record, combined with AGF’s powerful distribution capabilities, will create significant opportunities to meet the growing demand for new quantitative investment products from individual and institutional investors.

There will be no changes to Highstreet’s team. Highstreet’s partners and staff will continue to operate under their vision to provide their clients with investment and service excellence from their headquarters in London, Ontario. In addition, Highstreet’s clients will benefit from the strength and stability of AGF.

The transaction includes a combination of cash and, subject to TSX approval, the issuance of AGF non-voting class B shares.

Approximately 80% of the shares will be purchased by AGF; Highstreet’s management team will retain approximately 20% ownership.

Highstreet’s partners have agreed to receive payment for the shares sold over a three year period.