Peak Financial Group has announced plans to acquire the mutual fund dealer unit of Groupe Promutuel, nearly doubling its network to more than 1,000 registered professionals and employees across the country.

Under the transaction, Quebec City-based Groupe Promutuel — a major P&C insurance company in Quebec — will sell its mutual fund dealer unit, Promutuel Capital Financial Services, to Peak Financial. Promutuel acquired the network of 400 mutual funds representatives from Triglobal Capital Management Inc. at the beginning of 2008. It is selling the unit in order to focus on the insurance market.

The transaction is expected to close Dec. 31, subject to regulatory approval. The price of the transaction was not disclosed.

The acquisition of Promutuel Capital Financial Services, which has roughly $1.5 billion in mutual fund and segregated fund assets, will bring Peak’s total client assets to more than $6.5 billion, the company said.

“It’s very good because it gives us economies of scale,” said Robert Frances, president and CEO of Peak Financial.

Promutuel Capital Financial Services will remain a separate company within Montreal-based Peak Financial Group, and will maintain its name, according to Frances. It will become the fifth company in the group, joining Peak Investment Services Inc., Peak Financial Services Inc., Peak Securities Inc., and Peak Insurance Services Inc.

Most employees will remain with the company after the merge, Frances said, and the acquisition will not lead to any changes for advisors.

“We’re keeping everything as is,” he said.

The acquisition is part of a broader growth strategy for Peak, Frances said. He pointed out that it follows the company’s 2007 acquisition of AXA Financial Services. The company is focused on continuing to expand its independent dealer network.

“There’s been a lot of talk in the industry about whether independent advisors and dealers would survive the crisis,” Frances said. “We’re hoping the transaction shows that there’s room for independents, and there’s still a demand for what we do.”

Serge Roy, first vice president of marketing and business development at Promutuel, said the company is excited about the acquisition.

“Peak’s philosophy and values are very similar to our own,” he said. “Our representatives will therefore be able to work in an environment where their independence will be entirely respected.”

IE