Acquisition expands UK and Isle of Man coverage and contributes
to additional growth in client assets, further increasing contributions from the Company's wealth management operations
LONDON, March 21, 2019 /CNW/ - Canaccord Genuity Group Inc.
(TSX: CF, the "Company") is pleased to announce that through its UK & Europe based wealth
management business, Canaccord Genuity Wealth Management ("CGWM (UK)"), it has entered into a share purchase agreement to acquire
Thomas Miller Wealth Management Limited ("TMWML") and an asset purchase agreement to acquire the private client investment
management business of Thomas Miller Investment (Isle of Man) Limited.
TMWML is an integrated wealth manager headquartered in London and provides financial planning
and investment management services to private clients, trusts, charities and corporates in the UK. Services are centred on a
model of professionalism and trust, which has resulted in strong client loyalty and steady growth of inflows and assets over a
five-year period. Client assets of TMWML and the private client investment management business in the Isle of Man total approximately £1.0 billion (C$1.8 billion) and together
generated revenue of approximately £8.4 million (C$14.8 million) for the year ended December 31, 2018.
"The addition of Thomas Miller Investment's private client business supports our long-term strategic ambition of expanding our
footprint, whilst enhancing our financial planning business to ensure a truly client-centric offering that is essential for the
future generational planning needs of our growing client base," said David Esfandi, Chief
Executive Officer of CGWM (UK). "With a modern and scalable platform, we have a proven track record of integrating businesses and
client assets and we are deeply committed to ensuring that the business and clients of Thomas Miller Investment will have a
successful future with CGWM (UK)."
The acquisition is welcomed by Thomas Miller Investment given the similarities in specialist investment and independent
financial planning offerings and the dedication to best-in-class client services shared by the two businesses.
Hugh Titcomb, Chief Executive Officer of Thomas Miller Investment said: "We are very proud
of how the Thomas Miller Investment private client activities have developed over the past few years. We believe the transfer of
the business to Canaccord Genuity Wealth Management provides an exciting opportunity to continue this development for the benefit
of our clients and staff, supported by the significant resources and commitment provided by the Company. Completing this
transaction will allow Thomas Miller Investment to focus on its core institutional investment management activities."
TRANSACTION OVERVIEW
It is expected that the acquisition will be immediately accretive to the Company's adjusted earnings1.
Consideration of £18.5 million (C$31.8 million) will be payable on closing, with additional
contingent consideration of up to £9.5 million (C$16.8 million) payable over a period of three
years following completion subject to achievement of performance targets related to revenue and client assets. In
connection with the acquisition, an additional £17.0 million (C$30.0 million) has been added to the
Company's existing bank loan facility.
Closing is subject to regulatory approval and other customary closing conditions. The acquisition is expected to be completed
during the quarter ended June 30, 2019, which will be the first fiscal quarter of Canaccord Genuity
Group's 2020 fiscal year.
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1 Adjusted earnings is a non-IFRS measure generally
referred to by the Company as net income excluding significant items. Refer to non-IFRS measures in the Company's
MD&A.
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ABOUT CANACCORD GENUITY GROUP INC.:
Through its principal subsidiaries, Canaccord Genuity Group Inc. (the "Company") is a leading independent, full-service
financial services firm, with operations in two principal segments of the securities industry: wealth management and capital
markets. Since its establishment in 1950, the Company has been driven by an unwavering commitment to building lasting
client relationships. We achieve this by generating value for our individual, institutional and corporate clients through
comprehensive investment solutions, brokerage services and investment banking services. The Company has Wealth Management
offices located in Canada, the UK, Guernsey, Jersey, the
Isle of Man and Australia. Canaccord Genuity, the international capital markets division,
operates in North America, the UK & Europe, Asia, Australia and the Middle East.
Canaccord Genuity Group Inc. is publicly traded under the symbol CF on the TSX.
ABOUT CANACCORD GENUITY WEALTH MANAGEMENT
The wealth management operations of the Canaccord Genuity group (Canaccord Genuity Wealth Management) provide comprehensive
wealth management solutions and brokerage services to individual investors, private clients, charities and intermediaries through
a full suite of services tailored to the needs of clients in each of its markets. Canaccord Genuity Wealth Management has
Investment Advisors (IAs) and professionals in Canada, the UK, Jersey, Guernsey, the Isle of Man and Australia
and has advisors in Canada who are registered in the US. In Canada, Canaccord Genuity Wealth Management is a division of Canaccord Genuity Corp. In the UK, Canaccord
Genuity Wealth Management operates as Canaccord Genuity Wealth Limited and, in the Channel
Islands and the Isle of Man, as Canaccord Genuity Wealth (International) Limited.
Canaccord Genuity Wealth Management deals with US persons through Canaccord Genuity Wealth Management (USA) Inc.
To learn more about CGWM (UK), visit https://www.canaccordgenuity.com/wealth-management-uk/
ABOUT THOMAS MILLER INVESTMENT
Thomas Miller Investment (TMI) is an independent, specialist investment and wealth management business operating from offices
in the UK and Isle of Man. It is known for its responsive and disciplined approach to servicing
the needs of its clients, which comprise institutions and private clients. TMI is part of the Thomas Miller Group, an independent
and international provider of insurance, professional and investment services which has been looking after its clients' interests
for over 130 years. Following the sale of its private client activities, TMI will focus on providing investment management
services to institutional clients.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
This press release may contain "forward-looking information" as defined under applicable securities laws ("forward-looking
statements"). These statements relate to future events or future performance and reflect management's expectations, beliefs,
plans, estimates, intentions and similar statements concerning anticipated future events, results, circumstances, performance or
expectations that are not historical facts, including business and economic conditions and Canaccord Genuity Group's growth,
results of operations, performance and business prospects and opportunities. Such forward-looking statements reflect management's
current beliefs and are based on information currently available to management. In some cases, forward-looking statements can be
identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict",
"potential", "continue", "target", "intend", "could" or the negative of these terms or other comparable terminology. By their
very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of
factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements.
In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ
materially from any forward-looking statement. These factors include, but are not limited `to, market and general economic
conditions, the nature of the financial services industry and the risks and uncertainties discussed from time to time in the
Company's interim condensed and annual consolidated financial statements, its annual report and its annual information form
("AIF") filed on www.sedar.com as well as the factors discussed in the sections
entitled "Risk Management" and "Risk Factors" in the AIF, which include market, liquidity, credit, operational, legal and
regulatory risks. Material factors or assumptions that were used by the Company to develop the forward-looking statements
contained in this press release include, but are not limited to, those set out in the Fiscal 2019 Outlook section in the annual
MD&A and those discussed from time to time in the Company's interim condensed and annual consolidated financial statements,
its annual report and the AIF filed on www.sedar.com. The preceding list is not
exhaustive of all possible risk factors that may influence actual results. Readers are cautioned that the preceding list of
material factors or assumptions is not exhaustive.
Although the forward-looking statements contained in this press release are based upon what management believes are reasonable
assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. The
forward-looking statements contained in this press release are made as of the date of this press release and should not be relied
upon as representing the Company's views as of any date subsequent to the date of this press release. Except as may be required
by applicable law, the Company does not undertake, and specifically disclaims, any obligation to update or revise any
forward-looking statements, whether as a result of new information, further developments or otherwise.
SOURCE Canaccord Genuity Group Inc.
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