Industrial Alliance Insurance and Financial Services Inc. (TSX:IAG) is buying out investment firm, Jovian Capital Corp. (TSX:JOV), for $94 million in cash and stock, the companies said Tuesday evening.

Quebec City-based Industrial Alliance announced that it has reached an agreement to acquire all of the outstanding common shares of Toronto-based Jovian Capital at $10.23 per share for aggregate consideration of $94 million.

The price is based on a 46 per cent premium of the closing price of Jovian stock on the Toronto Stock Exchange on July 15. On Tuesday, Jovian shares closed up five cents to $7.05.

Jovian shareholders may elect to receive proceeds either in cash, shares, or some combination of cash and shares, up to an overall cap of 35% of the aggregate consideration payable in Industrial Alliance common shares.

The transaction, which is subject to customary closing conditions, including court, shareholder and regulatory approvals, is expected to be completed in early October.

The board of directors of Jovian has unanimously approved the transaction and has agreed to recommend that shareholders vote in favour of it; and, shareholders controlling approximately 38% of Jovian’s outstanding shares have agreed to support the deal.

Industrial Alliance says that the acquisition of Jovian will result in one-time restructuring and transaction costs of approximately 9¢ per share. Excluding these costs, the acquisition is expected to be neutral to earnings per share in 2013.

“This is a strategic and additive acquisition that complements our well-established wealth management platform,” commented Yvon Charest, president and CEO of Industrial Alliance, in a release. “It provides us with immediate scale in the fast-growing private client management segment, as well as significant incremental IIROC distribution across Canada.”

Jovian holds interests in various financial firms, including Leon Frazer & Associates Inc., T.E. Investment Counsel Inc., Hahn Investment Stewards & Company Inc., JovFinancial Solutions Inc. and investment dealer, MGI Securities Inc. It has combined assets under management and administration of almost $7 billion.

Industrial Alliance is the fourth largest life and health insurance company in Canada, and has assets under management and administration of more than $87 billion. It also has operations in the U.S.

With files from the Canadian Press.