CI Financial Corp. has agreed to acquire Sentry Investments Corp. for a total of C$780 million in cash and stock.
CI Financial will buy all the outstanding shares of Sentry and unit Sentry Investments Inc., with C$230 million payable in cash and the rest in CI Financial shares. The deal is expected to close on or about Sept. 29. After the deal closes, Sentry will continue as a stand-alone brand and will continue to provide investment products and portfolio managers to investors in Canada.
The transaction will increase CI Financial's assets under management by 16% to about C$140 billion from C$120.4 billion as of July 31. Total assets will increase to about C$180 billion. Sentry's owners will take a large portion of the purchase price in CI Financial shares and become long-term shareholders.
CIBC Capital Markets and Davies Ward Phillips Vineberg LLP acted as Sentry's advisers. Blake Cassels & Graydon LLP acted as exclusive advisers to CI Financial.