Canaccord buys Genuity

Canada-based broker and investment group Canaccord Financial is buying Genuity Capital Markets for £159 million in shares and cash.


Canada-based broker and investment group Canaccord Financial is buying Genuity Capital Markets for £159 million in shares and cash.

Canada-based broker and investment group Canaccord Financial is buying Genuity Capital Markets for £159 million in shares and cash.

Based in Toronto and listed there and on AIM, Canaccord is buying five year-old Genuity for its strength in the lucrative deal underwriting market in North America and the UK. Canaccord is issuing shares and paying C$30 million (£13 million) cash in a deal which values Genuity at nearly C$286 million.

David Kassie, chairman and chief executive officer of Genuity, which led 13 underwritings last year with an average size of C$109 million each, will join the board of Canaccord, along with colleague Philip Evershed. Genuity’s earnings have fluctuated with the market, surging from C$17.6 million in the year to January 2007 to C$84 million in 2007-08 before plunging to nothing in 2009-09 and bouncing to nearly C$32million in 2009-10.

Canaccord chairman Peter Brown says joining forces with Genuity makes the company’s goal of demonstrating Canadian leadership ‘even more of a reality’.

Nick Britton

Nick Britton

Nick was the Managing Editor for growthbusiness.co.uk when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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