is making a $31-million acquisition north of the border.
On Friday Hailer, CEO of Natixis Global Asset Management
] in the Americas and Asia, revealed that Natixis is buying Toronto-based mutual fund shop NexGen Financial Corporation
for CA$35 million (about $31.1 million in U.S. dollars). As of September 30, NexGen's assets under management total CA$919 million (about $817 million in U.S. dollars), so the price tag translates into about 3.81 percent of AUM. The price also translates into CA$7.25 per share of NexGen, a premium of 107 percent over NexGen's closing price on Thursday of CA$3.50.
As of June 30, Boston- and Paris-based Natixis' AUM surpassed $930 billion. Natixis uses a multi-boutique business model. In this case NexGen's existing senior management team, including co-CEO Abe Goenka
, will continue to lead the shop.
The release describes the deal as allowing Natixis to distribute its various offerings in the Canadian marketplace.
"Expanding into Canada is part of Natixis' strategic plan to actively pursue international growth," the release reads.
Hailer praises NexGen as "an innovative firm with a strong management team and a solid lineup of retail mutual funds offered through an expansive distribution platform."
Blair Franklin Capital Partners
is advising NexGen on the deal, while Goodmans
is NexGen's legal counsel and Borden Ladner Gervais
is Natixis' legal counsel. The deal is slated to close in January, pending shareholder and regulatory approval and the like.
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