Canaccord Genuity Acquires Punter Southall Wealth

Canaccord Genuity (CF) announced Tuesday it has entered into a share purchase agreement to buy Punter Southall Wealth Limited (PSW), including the midsize brand Psigma, of Punter Southall Group, through its U.K. wealth management business and Crown Dependencies (CGWM UK).

Canaccord is an independent financial services firm offering brokerage and wealth management services. (See Analysts’ Top Stocks on TipRanks)

Expanding CGWM UK Footprint

PSW is a leading vertically integrated wealth manager, providing a broad range of wealth management advice and solutions to high net worth individuals, including tailor-made portfolios, portfolio management services, and a range of multi-asset funds, complemented by a strong intermediate distribution channel. 

This acquisition represents an opportunity for CGWM UK to build upon its growth to date and advance its priority of becoming an integrated wealth manager of scale.

PSW’s core client proposition will remain largely unchanged, and the existing direct relationships between portfolio managers, financial planners and their clients will not be affected. With a strong track record of successfully integrating businesses and clients, CGWM UK expects to achieve tangible revenue and cost synergies with a clear pathway to continued growth.  

The consideration payable to PSG at closing will include £164 million (C$277.5 million) in cash, and a stake in newly issued ordinary shares in CGWM UK. 

CEO Commentary 

CGWM UK CEO David Esfandi said, “Our acquisition of Punter Southall Wealth represents an exciting strategic opportunity to further develop our integrated wealth management business, adding national scale and exceptional capability to our advice-led offering.

“We see a strong cultural fit between CGWM UK and PSW and we look forward to supporting this talented team, as we work together to build upon the strong foundations that both of our businesses have established to date.” 

Wall Street’s Take

Last month, TD Securities analyst Graham Ryding kept a Buy rating on CF while raising its price target to C$19 (from C$17). This implies 31.1% upside potential. Overall, consensus among Wall Street analysts is that CF is a Moderate Buy based on two Buys.

The average Canaccord Genuity price target of C$18.99 implies 31.1% upside potential to current levels.  

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