(Reuters) -Abu Dhabi’s Mubadala Capital will take CI Financial private in a C$12.1 billion ($8.66 billion) all-cash deal, including debt, the Canadian asset and wealth manager said on Monday.
Mubadala, the asset management arm of Abu Dhabi’s state investor, will pay CI Financial C$32 per share, representing a more than 33% premium to the stock’s Friday close.
Mergers and acquisitions outside the U.S. have seen an uptick in 2024 due to an improved financing market.
Deals announced worldwide in 2024 totaled $846.8 billion as of Sept. 25, 14% more than the year-ago period, according to data from Dealogic.
“Mubadala Capital invests with a long-term outlook and represents long-term capital – providing stability and certainty for CI’s clients and employees,” Kurt MacAlpine, CI’s chief executive, said in a statement.
CI said the deal will help its expansion in the U.S., where it operates as Corient.
MacAlpine, who will continue in his position, will roll all his equity in the transaction. Other members of the senior management who hold about 1.5% of the firm are also expected to have the opportunity to enter into equity rollover agreements.
The deal, which values the Toronto-headquartered firm’s equity at $4.7 billion, is expected to close in the second quarter of 2025.
CI Financial, which was founded in 1965 and operates primarily in Canada, the U.S. and Australia, had about C$518.1 billion in client assets as of Sept. 30.
CI shares have gained about 62% this year. In May 2023, the company sold a 20% stake in its U.S. wealth management arm to Bain Capital LP and other investors for C$1.34 billion.
INFOR Financial is the financial adviser to CI on the deal, while Jefferies Securities advised Mubadala.
The deal includes a termination fee of C$150 million payable by CI to Mubadala and a reverse termination fee of C$225 million, under certain circumstances.
($1 = 1.3978 Canadian dollars)
