Canaccord Genuity Wealth Management has acquired Hargreave Hale, boosting the combined firms’ assets under administration to £22.7bn.
Independent small and mid-cap specialist Hargreave Hale says the sale to a listed company will enable the firm to “accelerate growth plans” and support Canaccord’s bid to build on its UK presence.
Senior management at Hargreave Hale will continue in key leadership roles, with the focus of the acquisition on “superior growth potential” rather than reducing costs.
Hargreave Hale will operate as a standalone business for at least 12 months to keep disruption to a minimum, with the firm’s Blackpool office expected to be retained as an operational centre.
Canaccord Genuity Wealth Management UK will pay £52m to the shareholders of Hargreave Hale initially. An additional payment of up to £27.5m in contingent consideration may be paid over three years, subject to client retention and growth of assets. The transaction is subject to regulatory and shareholder approval.
Giles Hargreave, chairman of Hargreave Hale, says: “With its similar business model, shared culture and common values, Canaccord Genuity Wealth Management in the UK represents the ideal partner to continue the successful growth and development of our business. Along with our senior management team, I look forward to working with our new colleagues as we continue to deliver excellent investment and wealth management services for our clients.”
David Esfandi, CEO of Canaccord Genuity Wealth Management in the UK & Europe, says: “The strategic rationale for this acquisition is underpinned by it being complementary rather than duplicative. We are committed to investing in and accelerating the growth of Hargreave Hale’s fund management and private client wealth management operations for the benefit of the clients, staff and shareholders of both firms.”