AGF Management Ltd. has successfully completed its acquisition of 100% of Acuity Funds Ltd. and Acuity Investment Management Inc., the asset management firm said Tuesday.

The agreement positions AGF (TSX:AGF.B) as one of the largest independent investment management firms in Canada, increasing its total assets under management to nearly $52 billion.

As a result of the acquisition, AGF’s retail mutual fund and pooled fund AUM increase to approximately $27 billion from about $23 billion. At the same time, AGF’s institutional and high net worth AUM increase to approximately $25 billion from about $21 billion when combined with Acuity.

The acquisition was initially announced last November. The purchase price of $339 million was adjusted based on AUM levels at closing. A portion of the purchase price will be deferred and is subject to an AUM-based adjustment over three years from closing.

“The deal demonstrates AGF’s commitment to diversification while effectively leveraging our core focus as an investment management firm,” says AGF Chairman and CEO Blake Goldring. “This acquisition gives us greater scale as we continue to provide excellence in money management to meet the needs of a diverse range of clients in both the retail and institutional markets.”

The Acuity portfolio management team remains unchanged using its high quality proven investment style, philosophy and process. Acuity’s investment management team will also be shareholders in AGF with long-term incentives to focus on delivering performance for investors.

“As we worked towards this closing, AGF reinforced our shared values of independence, integrity and innovation,” says Acuity’s former president and CEO Ian Ihnatowycz. “We look forward to contributing to the continued growth and success of AGF and remain committed to delivering value for all stakeholders.”

Ihnatowycz will now join AGF’s board of directors.

IE