Fiera Capital is buying New York-based Samson Capital Advisors for about US$33.5 million.
Samson is a U.S. fixed income investment management firm with US$7.6 billion in assets under management. This acquisition will bring Fiera Capital’s total AUM to more than CAD$96 billion, and its American assets to US$17.2 billion.
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“With this acquisition, we are creating a full-fledged global asset manager in the U.S.,” said Jean-Guy Desjardins, Fiera’s chairman and CEO. Fiera expects the purchase will expand its U.S. high-net-worth clientele and proprietary investment strategies.
Benjamin Thompson, current Samson CEO, will be president and CEO of Fiera Capital’s U.S. asset management subsidiary.
The companies expect to finalize the purchase in the first half of 2015. Fiera Capital plans to pay US$19.2 million in cash and US$14.3 million in Fiera Capital’s Class A subordinate voting shares. An additional consideration of up to US$15 million, including an earnout of US$5 million as well as incentives designed for key employee retention, will be paid over a period of five years on the achievement of agreed-upon financial targets.