(June 22 – 11:00 ET) -University Avenue Financial Corp. and @rgentum Management & Research Corp. have signed an agreement to merge the two fund companies. Under the agreement @rgentum will continue operations in Montreal as an associate of University Avenue.
The merger will allow the two companies to realize substantial cost savings in the operations and back-office functions. Completion of the merger is subject to approval by regulators and the board of both companies and the satisfaction of certain conditions. Terms of the deal were not disclosed.
According to Andrew Roblin, a director of University Avenue, “the moment we started looking at this deal we felt there was a natural fit for both of the companies. We are two small managers, in a competitive industry that run very high quality products. To increase our market share, while controlling costs, we must combine the strengths of both of these companies.”
Under the agreement, Fred Pye, the current president of @rgentum will assume the role of president of University Avenue Mutual Funds. “This merger will allow us to build a national infrastructure and distribute both product lines through the same distribution channel. @rgentum’s product line concentrates on computer-driven processes and the University Avenue Funds mix nicely with our ‘Tradition meets Technology’ slogan.”
Following completion of the transaction University Avenue will maintain offices in Montreal and Toronto.
-IE Staff