IGM Financial closes IPC transaction
IGM Financial Inc. (TSX: IGI) announced that it has closed the previously announced transaction to acquire a majority interest in IPC Financial Network Inc. ("IPC") (TSX Venture Exchange: IPC). IPC is Canada's 5th largest financial planning organization with $7.3 billion of client assets under administration and $1.3 billion of mutual fund assets under management.
IGM Financial paid approximately $71 million dollars in cash and issued approximately 735,000 IGM Financial common shares, for total consideration of $95 million, to own, indirectly, 74.7 per cent of the equity of IPC.
Each of IPC Chief Executive Officer Steve Meehan and President Chris Reynolds hold, indirectly, 7.7 per cent of IPC and IPC financial advisors and other management members indirectly hold 9.9 per cent of IPC. IGM Financial has also invested $48.75 million in a convertible debenture, which replaces existing financing arrangements of IPC and will provide working capital to finance its ongoing growth.
"IPC provides our company with an expanded presence in the financial planning market and an additional avenue for growth over time," said Jeff Orr, President and Chief Executive Officer of IGM Financial. "The acquisition is consistent with IGM Financial's strategy of owning leading businesses within the advice segment of the Canadian financial services industry."
"This marks a new beginning for IPC. Our advisors and management are enthusiastic about the future and continuing our growth with our new partners," says Steve Meehan, Chief Executive Officer of IPC.
IPC will be operated as a separate entity and will be managed by its current leadership team. IGM Financial also owns 100 per cent of Investors Group Inc. and Mackenzie Financial Inc.
IGM Financial is one of Canada's premier personal financial services companies, and the country’s largest manager and distributor of mutual funds and other managed asset products. It has $78.8 billion of mutual funds under management. Its activities are carried out principally through Investors Group, Mackenzie Financial and IPC Financial Network.
For Further Information, Please Contact:
Mike Van Soelen
IPC Financial Network Inc.