Canaccord Financial has announced the closing of its purchase of Genuity Capital Markets, after shareholders gave the deal a ringing endorsement on Friday.
“We are very pleased that 99.8% of votes cast were in support of Canaccord’s acquisition of Genuity,” says Paul Reynolds, CEO and president of Canaccord. “This acquisition is a significant milestone in Canaccord’s evolution. It solidifies our market position in Canada and provides a stronger base for our continued expansion.”
He says their capital markets businesses will be fully integrated by May 10, 2010.
“Combined, Canaccord Genuity will be the gold standard independent investment bank — one that is expansive in resources and reach, but targeted in industry expertise, market focus and individual client attention,” says Reynolds.
Canaccord’s board of directors was joined by David Kassie and Philip Evershed, two nominees of the existing Genuity partnership. Kassie was also appointed to serve as Canaccord’s group chairman, while Peter Brown will serve as chairman and founder.
The chief officers of Canaccord Financial Inc. remain the same, with Paul Reynolds, Mark Maybank (COO) and Brad Kotush (CFO) continuing in their respective roles.
Virtually all of the other Genuity partners became Canaccord Genuity employees on closing and have entered into employment, non-competition, non-solicitation and standstill agreements.
The consideration for the acquisition of Genuity consisted of 26.5 million Canaccord common shares and $30 million of cash. In addition, the vendors will receive up to $28 million as a working capital adjustment subsequent to closing. All of the Canaccord common shares issued as part of the purchase price were placed in escrow at closing and will be released ratably over five years.
(04/26/10)