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Bullboard - Stock Discussion Forum CI Financial Corp T.CIX

Alternate Symbol(s):  CIXXF

CI Financial Corp. is a diversified global asset and wealth management company operating primarily in Canada, the United States and Australia. The Company is engaged in the management and distribution of a range of financial products and services, including wealth management, insurance, and others. The Company operates through three segments: Asset Management, Canadian Wealth Management, and U... see more

TSX:CIX - Post Discussion

CI Financial Corp > A Sizeable Acquisition...
View:
Post by BlueJay2020 on Jan 25, 2021 7:40pm

A Sizeable Acquisition...

With more to come, it seems..!

TORONTO and CHICAGO (January 25, 2021) – CI Financial Corp. (“CI”) (TSX: CIX; NYSE: CIXX), a diversified global asset and wealth management company, and Segall Bryant & Hamill, LLC (“SBH”) today announced an agreement under which CI will acquire SBH, a leading high-net-worth-focused registered investment advisor and multi-office institutional investment management firm headquartered in Chicago.

 

The addition of SBH, once completed, is expected to double CI’s total U.S.-based assets to US$46.1 billion1 and demonstrates the firm's commitment to continued cross-border growth and unwavering belief in the importance of financial advice, planning and investment management.

 

SBH is both a registered investment advisor (“RIA”) and an institutional asset manager. On a stand-alone basis, SBH’s US$6.0 billion2 wealth management platform is CI’s largest U.S. acquisition to date by asset size. CI is also excited to build on the strong momentum of SBH’s institutional platform, which offers a broad array of both traditional and alternative investment strategies.

 

“Acquiring Segall Bryant & Hamill is a major step forward as we continue our U.S. expansion,” said Kurt MacAlpine, CI Chief Executive Officer. “SBH has built an incredible business and formed a committed team that embodies the characteristics we look for in our acquisitions. SBH has also displayed a proven ability to adapt to changing market dynamics to deliver a consistently superior level of client service and investment performance through deep fundamental research. I am pleased to announce that the SBH team will remain intact and be a key driver of CI’s growth in the U.S.”

 

With US$23.1 billion2,3 in assets on its platform and 122 employees, SBH serves a broad array of wealth management, intermediary and institutional clients from offices in Chicago, Denver, Philadelphia, St. Louis and Naples, Florida. Since its founding in 1994, SBH has specialized in providing strong risk-adjusted returns across multiple asset classes to deliver clients customized portfolio solutions and an exceptional client experience.

 

“The interests of our clients have been at the center of every strategic decision we have made since the firm’s founding over 25 years ago,” said Philip Hildebrandt, Chief Executive Officer of SBH. “Our clients will benefit from the synergies that result when like-minded organizations leverage their talents and resources to enhance the client experience. CI is a strong strategic partner for SBH, providing the capital resources of a large, global investment firm while allowing us to retain our client-centric approach. We are excited to become part of the growing CI family of companies.”

 

With this acquisition, CI has established a significant presence in U.S. wealth management, both in asset size and geographic reach. It marks CI’s 14th U.S. acquisition (including acquisitions by CI-affiliated RIAs) since January 2020. Following the completion of the SBH transaction, CI’s total North American wealth management assets are expected to be approximately US$82 billion (C$104 billion) and total assets are expected to reach approximately US$205 billion (C$261 billion).1

 

Cambridge International Partners served as the exclusive financial advisor to SBH. This transaction is expected to close in the second quarter of 2021, subject to regulatory, stock exchange and other customary closing conditions. Financial terms of this transaction were not disclosed.

 

About Segall Bryant & Hamill

Segall Bryant & Hamill, LLC is an independent investment firm headquartered in Chicago, with offices in Denver, Philadelphia, St. Louis, and Naples, Florida. The firm was established in 1994 and had over US$23 billion3 in assets under management/assets under advisement as at December 31, 2020. SBH offers a range of investment strategies and customized solutions for institutional, advisor and wealth management clients, including domestic, international and global equity, fixed income and alternatives.

Comment by Ronbromleygross on Jan 26, 2021 12:29am
Very nice indeed And the aquisition build out continues.   Look for more aquisitions to come.  They are not done yet. CI wants to be a global powerhouse!  Ron
Comment by WindsorGuy on Jan 26, 2021 1:51pm
Great time for Cdn. companies to acquire US assets with a strong loonie. I also bought some DIR.UN on their aquisitions. GLTA
Comment by islandbrook on Jan 26, 2021 2:02pm
With more to come, CIX could become a 15-20% growth stock. After all, assets under administration (AUM) grew by 20% last year,wlile yesterdays acquision added 10% to last year's total puts it  in the growth category. Certainly at that rate of growth,it deserves a PE mulipe far above the current PE of 7.1. times the consensus estimeate of $2.37 for 2020.A more reasonable mutiple of 12 ...more  
Comment by WindsorGuy on Jan 28, 2021 2:56pm
I have been buying on this short term  setback. Great long term investment IMHO. GLTA
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