(January 31 – 10:35 ET) – Winnipeg’s Assante Corp. has acquired another prominent sports management firm in the U.S. It’s Klarberg, Raiola & Associates, of New York, NY.
The firm is to be known as KRT Management Inc., providing financial planning, business management, accounting and tax services to over 1,000 high-net-worth clients, including over 600 athletes and entertainers. Closing is subject to certain conditions, including regulatory approvals.
Under the deal Assante acquires all of the assets of Klarberg, Raiola & Associates and all of the shares of Klarberg & Raiola Business Management Inc., for an undisclosed quantity of cash and shares.
At closing it will pay 304,863 special shares and up to 381,079 special shares in an earn-out. The special shares have a liquidation value of $19 per share and are convertible to subordinate voting shares after the fifth year. The conversion rate is based on the market price at the time of conversion but will not exceed $15.86 per share.
Assante will not issue more than 1,643,493 subordinate voting shares on the conversion of the special shares and it has the option to redeem them for cash rather than shares if the conversion price is less than $7.93 per share.
“The acquisition of KRT Management and its expertise adds a critical component to Assante’s wealth and life management services,” says Martin Weinberg, chairman, president and chief executive of Assante. “KRT has extensive experience in the areas of sophisticated tax planning and structuring, tailored to the unique needs of its clients throughout the United States and Canada. Assante will work with the partners at KRT Management to enhance the Assante service model, building on KRT Management’s best practices.”
-IE Staff