Canadian investment management firm Guardian Capital Group Ltd. today announced that it will go private following its acquisition by Desjardins Global Asset Management in a deal valued at $1.67 billion.
Under the terms of the agreement, Desjardins will acquire all issued and outstanding shares of Guardian’s common stock and Class A shares, representing a 48% premium to the last closing price of the common shares and a 68% premium to the last closing price of the Class A shares prior to the announcement. Upon closing, Guardian is expected to delist its shares from the Toronto Stock Exchange.
The transaction was supported by top legal advisors, with Borden Ladner Gervais LLP representing Guardian, Torys LLP advising Guardian’s independent committee, and Stikeman Elliott LLP representing Desjardins.
The combined organization will manage approximately $280 billion in client assets, enhancing its global footprint and positioning it to deliver expanded value across multiple client segments.
“The transaction, with its significant cash premium, is an exceptional outcome for Guardian shareholders, many of whom have been patient long-term investors,” said George Mavroudis, CEO of Guardian Capital. “This partnership with Desjardins provides a pivotal opportunity to align with a strategic partner of exceptional financial strength, enabling us to achieve our growth ambitions and continue delivering exceptional value to our clients.”
Denis Dubois, Executive Vice President of Wealth Management and Life and Health Insurance at Desjardins, added: “Together with Guardian, we are creating a powerful asset management platform with the scale, expertise, and reach to deliver real value to our clients. This bold step forward reflects our ambition to grow with purpose, innovate with confidence, and lead with impact.”
Guardian Capital will continue to be led by George Mavroudis as CEO following the completion of the transaction. Shareholders representing just over 32% of Guardian’s shares have entered into voting and support agreements in favor of the deal.
