Fiera Capital Corporation is to acquire New York based Samson Capital Advisors, a US fixed income investment management firm with USD7.6 billion in assets under management.
Total consideration paid at closing for the transaction will be approximately USD33.5 million, subject to various adjustments. This acquisition will bring Fiera Capital's total assets under management to over CAD$96 billion while bolstering its US presence in the global asset management space.
"With this acquisition, we are creating a full-fledged global asset manager in the US adding strong leadership and investment talent in order to further expand our presence in this dynamic and sophisticated market," says Jean-Guy Desjardins, Chairman and Chief Executive Officer of Fiera Capital. "While we are currently experiencing solid momentum on the US institutional side, this transaction will add significant bench strength to our high-net-worth segment as well as establish a strong foundation for our proprietary investment strategies."
"Our team is excited to join Fiera Capital and to help continue to build a global investment management firm that provides the highest quality in customised service and performance," says Benjamin Thompson, Chief Executive Officer of Samson. "As we share an entrepreneurial heritage, similar investment values and a client-focused approach, this relationship will benefit clients by enhancing our current investment strategies and fundamental research capabilities, while garnering greater access to equities and other investment solutions."
As a result of this transaction, Benjamin Thompson, current Chief Executive Officer of Samson, will assume the role of President and Chief Executive Officer of Fiera Capital's US asset management subsidiary. This entity will bring the combined US presence of Samson and existing Fiera Capital US affiliates to USD17.2 billion in assets under management.
"Samson has a strong track record of generating returns and benefits from a robust practice in fixed income that will complement Fiera Capital's existing US presence. We are very excited to join forces with this experienced team as well as the additional leadership they will bring to Fiera Capital in the US," says Desjardins.
Total consideration paid at closing for Samson will be approximately USD33.5 million, subject to various adjustments. At closing, Fiera Capital will pay to the sellers USD19.2 million in cash and will issue to the sellers USD14.3 million in Fiera Capital's Class A subordinate voting shares. An additional consideration of up to USD15 million, including an earnout of USD5 million as well as incentives designed for key employee retention will be paid over a period of five years on the achievement of agreed upon financial targets. All Class A subordinate voting shares to be issued by Fiera Capital to the sellers will be issued at a price per share equal to the thirty (30) day aggregate volume-weighted average per share price on the Toronto Stock Exchange for the period of the thirty (30) consecutive trading days ending on the second-to-last full trading day prior to the closing.
The acquisition, expected to close during the first half of 2015, is subject to customary conditions, including applicable regulatory approvals and approval of the Toronto Stock Exchange.
