The Co-Operators Group has reached a deal to purchase investment management firm Addenda Capital for $306.5 million.
Montreal-based Addenda specializes in the active management of fixed-income portfolios, primarily for institutional clients, and has about $29 billion of assets under management.
“The two companies complement each other well, and this acquisition supports The Co-Operators’ strategic goal of significantly growing our presence in Quebec,” says Kathy Bardswick, president and CEO of The Co-Operators.
A shareholders’ meeting to vote on the proposed agreement is expected to take place in April.
Soon after the completion of the deal, the business of Co-Operators Investment Counselling Limited, a wholly owned subsidiary of The Co-Operators, will be combined with that of Addenda.
The combined entity, which will retain the Addenda name, will have offices in Montreal, Toronto, Guelph and Regina, and manage approximately $40 billion in assets.
Michael White, currently the president of Co-Operators Investment Counselling, will become the president and CEO of the new Addenda Capital.
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