By James Langton

(November 20 – 11:10 ET) – AGF Management Ltd. has completed the acquisition of 100% of the outstanding shares of Global Strategy Holdings Inc. for a total purchase price of $438 million. The company says the combined enterprise will continue under the AGF brand name.

“AGF has new strength to reinforce our position as a dominant player in the Canadian fund industry and to build a stronger platform for global growth,” says Blake Goldring, president and CEO, AGF Management Ltd. “Our vision is to be a global company with a Canadian home.”

The purchase price was paid 75% in cash and notes and 25% AGF Class B Non-Voting shares. The total number of AGF Class B Non-Voting shares issued was 4,222,908.

Upon closing, about one third of the Global Strategy team received pink slips. AGF met with Global Strategy staff this morning and hired 145 out of 217 employees to either fill existing positions at AGF, or new positions in the combined organization.

Most of the staff let go are part of Global Strategy’s media services unit. “AGF has no comparable department, therefore we had no requirement for staff in this area,” says Pat Phillips, AGF’s director of communications. “This was essentially a news-gathering and publishing business that, we feel, duplicates the services offered by media outlets. AGF, as well, produces a number of communications vehicles aimed directly at advisors that will now incorporate Global Strategy fund information.”

Senior executives at Global Strategy worked their final day last Friday.

Global Strategy manages 22 mutual funds and is the general partner of Global Strategy Master Limited Partnership. With the addition of Global Strategy products and assets, AGF now offers investors 72 funds and manage assets exceeding $34 billion.

AGF says the expanded company will offer investors a broader range of funds, enhanced distribution channels and increased operating efficiencies. “AGF will be able to provide tremendous new opportunities for financial advisors, investors and shareholders,” says Goldring.
-IE Staff