CI Financial makes a strategic investment in financial technology with the acquisition of BBS Securities
TSX Symbol: CIX
TORONTO, Sept. 8, 2017 /CNW/ – CI Financial Corp. (“CI”) and BBS Securities Inc. today announced they have reached an agreement under which CI will acquire BBS Securities Inc. and associated entities, including Pario Technology Corp., a financial technology company, and Virtual Brokers, a top-ranked online brokerage (collectively, “BBS”).
“We are excited to acquire BBS, whose innovative technology has made it a leader in its market,” said Peter W. Anderson, CI’s Chief Executive Officer.
“As part of this purchase, we are gaining exceptional technology that can be used throughout the CI Financial group of companies to increase the efficiency of our operations and enhance the products and services we offer to financial advisors and their clients.”
BBS provides a wide range of services to retail and institutional investors using a proprietary system that is one of the most technologically advanced and efficient brokerage platforms in the Canadian market. The company has experienced rapid growth over the last six years and Virtual Brokers has been the highest-ranked firm in the annual Globe and Mail ranking of online brokers in four of the last five years. As well, the company’s platform is used by a number of investment counsellors and other institutions.
“As one of Canada’s largest asset managers, we are ensuring we have the capabilities and the technology to effectively meet the evolving needs of our investors and advisors,” Mr. Anderson said.
“We are delighted to be joining forces with CI Financial, another company that prides itself on being independent and entrepreneurial,” said BardyaZiaian, Founder, CEO and President of BBS Securities. “Our firm will benefit from the financial strength and stability of CI, which will support investments in technology, product development and service.”
The transaction is expected to close in the fourth quarter of 2017, subject to regulatory approvals. Following the close, Virtual Brokers will continue to operate under its current name. Terms of the transaction were not disclosed. Blair Franklin acted as exclusive financial advisor to BBS.
About CI Financial Corp.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth management company with approximately $161 billion in assets as of August 31, 2017. Its primary operating businesses are CI Investments Inc., one of Canada’s largest investment managers, advisory businesses Assante Wealth Management and Stonegate Private Counsel, Grant Samuel Funds Management of Australia, and First Asset Investment Management, a leader in providing actively managed exchange-traded funds to the Canadian marketplace. Further information is available at www.cifinancial.com.
This press release contains forward-looking statements with respect to CI Financial and its products and services, including its business operations and strategy and financial performance and condition. Although management believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, including interest rates, business competition, changes in government regulations or in tax laws, and other factors discussed in materials filed with applicable securities regulatory authorities from time to time.
SOURCE CI Financial Corp.