Canada Life, the subsidiary of Great-West Lifeco Inc., has unveiled an agreement to acquire Investment Planning Counsel Inc., an independent wealth management firm, from IGM Financial Inc. (IGM).
With this acquisition, Canada Life is extending its wealth management reach and capabilities, promising to help advisors better meet the diverse and changing needs of more Canadians.
Paul Mahon, President and Chief Executive Officer, Great-West Lifeco and Canada Life, said: “We are building on our strong Canadian franchise with a growing personal wealth business. This acquisition accelerates Canada Life’s vision to establish a leadership position in the Canadian independent advisor wealth market.
“The addition of IPC, a business we’ve had keen interest in for some time, positions Canada Life for strong organic growth and further investments in market consolidation that support our strategy.”
Canada Life is set to acquire IPC for a total cash consideration of $575 million, subject to adjustments. The firm expects transaction and integration costs of $25 million pre-tax over 12 to 18 months after the deal closes.
The transaction is expected to be completed by the end of 2023 and is subject to customary closing conditions including regulatory approvals.
With 650 advisors, IPC has an impressive reputation as a leading wealth dealer and investment company operating across both MFDA and IIROC platforms. Upon closing of the acquisition, Canada Life will be one of the largest non-bank wealth providers in Canada with over 4000 advisor relationships and more than $85 billion in assets under administration.
James O’Sullivan, President and Chief Executive Officer, IGM Financial Inc, said: “I’m delighted that the IPC team will be moving over to Canada Life and continue to be part of the Power Corporation of Canada group of companies. This transaction provides Canada Life with the opportunity to deepen their presence in the Canadian wealth market and assist IPC in achieving its full strategic potential. Canada Life will be a strong owner of this business.”
Jeff Macoun, President and Chief Operating Officer, Canada Life, commented: “We’ve long believed in the value of advice. IPC’s strong advisor relationships will help expand access to the trusted advice Canada Life is known for. IPC’s mutual fund, securities, and discretionary dealer platforms mean advisors can grow their practices in support of the changing needs of their clients and do so within the evolving regulatory environment. Together, Canada Life and IPC will offer independent advisors practice management, planning and succession support that will help them ensure continuity of advice and service for clients. We’re excited to welcome IPC to the Canada Life family.”
Blaine Shewchuk, President and Chief Executive Officer, IPC, added: “IPC founder Chris Reynolds and I are thrilled to embark on our next chapter of growth with Canada Life. The access to capital will support our ability to attract new advisors, provide innovative portfolio solutions, and continue to invest in helping advisors better serve their clients. Advisors will continue to enjoy the advantages that come with being part of an independent wealth firm, which includes an open architecture investment platform.”
