TRANSACTION SUMMARY

On 12 September 2024, Canaccord Genuity Group Inc. (TSX), Canaccord, announced that through its wealth management business in the UK & Crown Dependencies, CGWM UK, it had entered into a binding agreement with Brooks Macdonald Group plc, Brooks Macdonald, to acquire its wholly owned operating subsidiary Brooks Macdonald Asset Management (International) Limited, BMI.

Founded in 2012, BMI provides investment management, financial planning and fund management services through its offices in Jersey, Guernsey, and the Isle of Man. As of 30 June 2024, BMI had funds under management of £2.3 billion and annual revenue of £19.9 million.

The acquisition represents an important addition to the Company’s international operations and, specifically, the addition of BMI will complement the Company’s existing capabilities in Jersey and provide a strong foundation to strengthen and support our continued growth and development. Upon completion of the transaction, the professionals and clients of BMI will benefit from being part of a larger, dedicated wealth management business with deep resources and a strong commitment to supporting their long-term growth and success.

Consideration to be paid to Brooks Macdonald on closing will comprise cash in the amount of £28.0 million with an additional contingent consideration of up to £22.85 million payable on the second anniversary of completion, subject to meeting certain revenue targets. BMI will be acquired by CGWM UK’s international subsidiary, Canaccord Genuity Wealth (International) Holdings Limited, with an agreed level of regulatory capital, with any surplus paid for at completion. Completion of the acquisition is subject to regulatory approval and other customary closing conditions. The acquisition is expected to be completed within the quarter ended March 31, 2025.

CANACCORD GENUITY GROUP

Through its principal subsidiaries, Canaccord Genuity Group Inc. is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and capital markets. Since its establishment in 1950, the Company has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services. The Company has wealth management offices located in Canada, the UK, Guernsey, Jersey, the Isle of Man and Australia. The Company’s international capital markets division operates in North America, UK & Europe, Asia, and Australia.

BMI

BMI provides its services to international clients and intermediaries through its Crown Dependencies based investment management, financial planning, and fund management subsidiaries. BMI has offices in Jersey, Guernsey and the Isle of Man with the majority of its 57 employees located in the Jersey office.

BROOKS MACDONALD GROUP

Brooks Macdonald Group plc, through its various subsidiaries, provides leading wealth management services in the UK and internationally. The Group, which was founded in 1991 and began trading on AIM in 2005, had discretionary assets under management of £18.0 billion as of 30 June 2024. Brooks Macdonald offers outsourced discretionary investment management for intermediaries and advice-led integrated wealth management for private clients. The Group also acts as fund manager to a range of onshore and international funds. The Group has a strong local presence across the UK.

ROLE

SHP acted as financial adviser to CGWM UK.