Desjardins Global Asset Management Inc. announced its purchase of Guardian Capital Group Limited Thursday, in an all-cash $1.67 billion deal. That figure values Guardian shares at $68 per.
The share price is a premium of 66% relative to yesterday’s Class A share closing price, and a 48% premium on common shares. Based on the firm’s 30-day volume-weighted average trading place, the premium is 65% and 54% respectively.
“This transaction marks a pivotal opportunity to align with a strong strategic partner — one with exceptional financial resources and a distinguished history in financial services,” said George Mavroudis, Guardian’s CEO in a media release.
“We’ve been very proud of building a global business based out of Canada. This transaction shows that Canadians can continue to lead with vision,” he added in an interview.
“Together with Guardian, we are creating a powerful asset management platform with the scale, expertise and reach to deliver real value to the clients who place their trust in us,” said Denis Dubois, executive vice-president of wealth management and life and health insurance at Desjardins Group. “This is a bold step forward for both organizations — one that empowers us to grow with purpose, innovate with confidence and reflects our ambition to lead with impact.”
Dubois moves into the role of president and CEO of Desjardins Group Sept. 2.
Mavroudis will lead the combined organization. Nicolas Richard, president and COO of Desjardins Global Asset Management will join the executive team.
The deal follows Desjardins Group’s purchase of Guardian Capital’s Worldsource businesses in 2022. That buy included investment dealer Worldsource Securities Inc., mutual fund dealer Worldsource Financial Management Inc. and life insurance managing general agency IDC Worldsource Insurance Network Inc.
“We already knew George quite well,” said Richard, about negotiations that got underway a few months back. “We really felt strongly about a very strong cultural fit.”
Currently, Desjardins Global Asset Management has about $112 billion under management, “mostly centred in Quebec,” said Richard. Together, the two companies will manage roughly $280 billion in client assets.
“George’s footprint in the rest of Canada, as well as internationally with a strong presence in the U.S., U.K. and elsewhere, opens up a lot of possibilities for us to expand our reach.”
The deal will be put to a shareholder vote, likely in October.