CGWM said the acquisition is part of a strategy to grow its global wealth management business by making wealth management a bigger contributor to its group results.
Under the terms of the transaction, CGWM will pay an initial consideration to Hargreave Hale shareholders of £52m and an additional contingent consideration of up to £27.5m.
Hargreave Hale is a UK-based investment and wealth management business with a total of £8bn in assets under management. It provides discretionary investment management and stockbroking services to more than 14,000 private clients, intermediaries, corporations and charities.
CGWM said the deal establishes a “substantially enlarged” wealth management operation in the UK and Europe with more than £18bn in private client assets and £4.7bn in fund management assets under management.
It added both firms have “highly complementary, client-centric” business models and have a “strong geographic fit”, and the addition of Hargreave Hale will strengthen its presence in London and across the UK.
Hargreave Hale will operate as a standalone entity for at least 12 months in order to minimise disruption to clients, and employees and senior management will continue to hold key leadership roles within the enlarged group.
“We are delighted to announce the acquisition of Hargreave Hale, which wholly supports our ambitious growth plans,” said David Esfandi, chief executive of Canaccord Genuity Wealth Management in the UK and Europe.
“The strategic rationale for this acquisition is underpinned by it being complementary rather than duplicative. We are committed to investing in and accelerating the growth of Hargreave Hale’s fund management and private client wealth management operations for the benefit of the clients, staff and shareholders of both firms.”
Giles Hargreave, chairman of Hargreave Hale, said: “With its similar business model, shared culture and common values, Canaccord Genuity Wealth Management in the UK represents the ideal partner to continue the successful growth and development of our business.
“Along with our senior management team, I look forward to working with our new colleagues as we continue to deliver excellent investment and wealth management services for our clients.”