Natixis Global Asset Management is to acquire all of the outstanding common shares of NexGen for consideration consisting of CAD7.25 cash per common share, for an enterprise value of CAD35m.
The CAD7.25 price per share represents a 107 per cent premium to NexGen's closing share price of CAD3.50 on 23 October 2014, the last trading day before announcement of the transaction.
NexGen is a Toronto-based asset manager with more than CAD919 million in assets under management and a broad distribution platform.
“NexGen is an innovative firm with a strong management team and a solid line-up of retail mutual funds offered through an expansive distribution platform,” says John Hailer, chief executive officer of Natixis in the Americas and Asia. “We are honoured to build on the legacy James Hunter established in one of the largest retail markets in the world. Together with NexGen, we will be better positioned to serve the market with our worldwide network of affiliated investment managers.”
Natixis manages more than USD930 billion in assets through its global affiliates and was selected as the top US mutual fund family based on an evaluation of 2013 performance, according to the annual Barron’s/Lipper ranking of US mutual fund families. The firm is headquartered in Paris and Boston with offices around the world. Natixis plans to build upon NexGen’s existing mutual fund platform by selectively offering its broad range of asset management strategies into the Canadian retail market.
"We are very pleased to join one of the world’s leading asset managers," says Abe Goenka, NexGen co-chief executive. "It’s exciting to become part of an organisation with significant resources and an outstanding group of affiliated asset managers. This gives us greater access to a broad set of investment strategies that will allow us to create new products adding to our already diverse fund offerings, allowing us to better serve current clients and pursue new opportunities."
Expanding into Canada is part of Natixis’ plan to actively pursue international growth. In June, the firm announced plans to launch a new business development initiative in Canada focused on tapping into the steadily growing Canadian institutional market. In 2013, the firm established its retail platform in the UK, adding personnel and launching several mutual funds registered for the UK.
NexGen offers tax-efficient wealth management strategies. The firm’s patent pending proprietary mutual fund structure is designed to achieve a number of tax planning objectives that are not publicly offered by any other Canadian mutual fund company. The firm distributes through more than 1,600 financial advisors and more than 100 dealers throughout Canada.