Wealth-hungry Scotiabank to buy investment manager Jarislowsky Fraser for $950M
Bank of Nova Scotia has made good on recent hints of interest in additional institutional and wealth management assets by announcing a deal on Monday to buy independent investment firm Jarislowsky Fraser for approximately $950 million.
Scotiabank, Canada’s third-largest lender, said in a release that it would “primarily” pay for its purchase of Montreal-based Jarislowsky Fraser by issuing shares. The deal is expected to close by the third quarter of 2018, pending regulatory approvals.
The addition of Jarislowsky Fraser, which has more than $40 billion in assets under management via pension funds, corporations and high-net-worth clients, among others, would create Canada’s third-largest active asset manager, with around $166 billion in assets under management.
“This transaction aligns with our strategic commitment to diversify our global wealth management business by building out a platform of rigorous, process‐driven investment capabilities for institutional investors across our footprint in Canada and the Pacific Alliance,” Brian Porter, president and chief executive officer at Scotiabank, said in a release. “The acquisition also enhances Scotiabank’s ability to serve the banking, estate, and trust needs of high net worth families who are the clients of Jarislowsky Fraser.”