News

Canaccord Financial Inc. completes acquisition of Genuity Capital Markets

23 April 2010

TORONTO, Friday, April 23, 2010 – Canaccord Financial Inc. (“Canaccord”, TSX: CF, AIM: CF.) is pleased to announce the completion of its acquisition of Genuity Capital Markets and certain of its affiliates (“Genuity”), the leading independent advisory and restructuring firm in Canada. 

“This acquisition is a significant milestone in Canaccord’s evolution.  It solidifies our market position in Canada and provides a stronger base for our continued expansion”, noted Paul Reynolds, President and CEO of Canaccord Financial Inc.  “Our capital markets businesses will be fully integrated beginning May 10, 2010.  Combined, Canaccord Genuity will be the gold standard independent investment bank – one that is expansive in resources and reach, but targeted in industry expertise, market focus and individual client attention.”

The consideration for the acquisition of Genuity consisted of 26.5 million Canaccord common shares and $30 million of cash. In addition, the vendors will receive up to $28 million as a working capital adjustment subsequent to closing. All of the Canaccord common shares issued as part of the purchase price were placed in escrow at closing and will be released ratably over five years. Genuity’s ten largest partners have entered into employment, non-competition, non-solicitation and standstill agreements. Virtually all of the other Genuity partners became Canaccord Genuity employees on closing.

Upon closing, Canaccord welcomed David Kassie and Philip Evershed, two nominees of the existing Genuity partnership, to its board of directors. David Kassie was also appointed to serve as Canaccord’s Group Chairman, while Peter Brown will serve as Chairman and Founder.   The chief officers of Canaccord Financial Inc. remain the same, with Paul Reynolds, Mark Maybank and Brad Kotush continuing as President and Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer, respectively.

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