AGF Management Ltd., one of Canada’s largest independent money managers, has signed a deal to buy Acuity Funds Ltd. and Acuity Investment Management Inc. for $325 million. The purchase will increase AGF’s total assets under management to more than $51 billion.
The deal is expected to be completed on or about Feb. 1, 2011, and is subject to an adjustment based on assets at closing.
The new asset base will be split almost evenly between retail and institutional assets, reflecting AGF’s ongoing strategy of diversification and growth. Acuity, a leading Canadian investment management firm, currently manages approximately $7.4 billion for retail, institutional and high net worth investors.
“We are excited about this acquisition, which strengthens our position as one of Canada’s premier independent investment management firms,” said AGF chair and CEO Blake C. Goldring. “In this era of consolidation, we have demonstrated our ability to increase scale, and we are strongly committed to enhancing our presence at home and internationally as we pursue both organic and strategic growth opportunities.”
The Acuity portfolio management team and investment style will remain unchanged. Acuity’s investment management team will also be shareholders in AGF with long-term incentives and lock-ins to focus on delivering performance for investors.