Wealth manager Collins Stewart acquired in £250m deal

Canadian brokerage Canaccord has agreed terms on a takeover of UK wealth manager Collins Stewart Hawkpoint in a deal which values the advisory business at more than £253m.

Canaccord will acquire the entire issued and to be issued ordinary share capital of Collins Stewart Hawkpoint, offering 57.6p cash and 0.072607 Canaccord shares for every Collins Stewart share.

Based on a closing price of C$8.50 for Canaccord on 14 December, the terms value each Collins Stewart share at 96p.

Collins Stewart Hawkpoint is an independent financial advisory business employing about 850 people.

Chief executive Mark Brown said: "We are among the strongest and most international mid-market firms in our respective markets and so it makes perfect strategic sense to combine forces. Both businesses are highly entrepreneurial and the cultural fit is good."

Paul Reynolds, president and CEO of Canaccord, added: ""The acquisition of Collins Stewart Hawkpoint will be a transformational expansion of our business and will firmly position Canaccord as a leading global independent investment bank."