The acquisition includes adviser-facing brand Psigma.
Punter Southall Group will be paid £164m in cash at the completion of the deal, along with an equity interest in the newly-issued ordinary shares in CGWM UK.
CGWM also expects to pay approximately £6m in retention and incentive awards, both cash and equity.
The wealth management firms have entered into a share purchase agreement as Cannaccord looks to increase the scale of its Financial Planning capabilities in the UK.
Punter Southall Wealth is a wealth manager specialising in high-net-worth individuals. It has approximately £5bn in client assets under management and is forecast to generate annual revenue of £33.7m in the year ending 31 December.
It has offices in London, Guildford, Birmingham, Newcastle and Edinburgh and was one of the first Financial Planning firms to achieve Chartered status.
The firm’s existing relationships with Financial Planners and their clients will not be affected, according to Canaccord.
David Esfandi, CEO of CGWM UK said: “Our acquisition of Punter Southall Wealth represents an exciting strategic opportunity to further develop our integrated wealth management business, adding national scale and exceptional capability to our advice-led offering.
“We see a strong cultural fit between CGWM UK and PSW and we look forward to supporting this talented team, as we work together to build upon the strong foundations that both of our businesses have established to date.”
In order to fund the deal CGWM UK will add £100m to its existing bank facility along with an additional investment from HPS Investment Partners of £65.3m.
On conclusion of the acquisition, it is expected that CGWM UK parent company, Canadian-headquartered Canaccord Genuity Group, will hold an approximate 66.9% equity equivalent interest in CGWM UK on an as converted basis.
The wealth management operations of the Canaccord Genuity Group provide wealth management solutions and brokerage services to individual investors, private clients, charities and intermediaries.
Canaccord Genuity Wealth Management has advisers based in Canada, the UK, and Australia and advisers in Canada who are registered in the US.
From Financial Planning Jobs. For more click on any job.
This is a selection of jobs from our new Financial Planning Jobs site - for more job vacancies click on any job or the link below.