Scotiabank to buy Jarislowsky Fraser in $950mn deal

Toronto-based Scotiabank has announced that it has entered into a definitive agreement to acquire leading Canadian investment management company Jarislowsky Fraser in a deal worth CAD$950mn.

The merger will see Scotiabank adding Jarislowsky Fraser’s $40bn in assets to its own existing portfolio - a significant step in the commercial bank’s attempts to expand its institutional and wealth management unit.

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“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,” said Brian Porter, President and CEO at Scotiabank.

Jarislowsky Fraser’s existing management team will continue to lead the company’s business, with the head office of the 62-year-old firm set to remain in Montreal, Quebec.

“With its existing distribution footprint, Scotiabank is uniquely positioned to preserve the legacy of our firm and enable the next generation of growth,” said Stephen A. Jarislowsky, Founder of Jarislowsky Fraser. “We look forward to continuing to serve our clients and to enhancing our investment capabilities to meet their needs today and in the future.”

The transaction will include an earn out clause, whereby $56mn in Scotiabank shares may be provided to Jarislowsky Fraser dependent upon achieving certain growth targets.