Natixis Global Asset Management to Buy NexGen Financial

November 21, 2014

On October 24, 2014, Natixis Global Asset Management announced an agreement to buy all of the outstanding common shares of NexGen for $CA7.25 per Share.

On October 24, 2014 Natixis Global Asset Management (Natixis) announced that a wholly-owned subsidiary of Natixis and NexGen Financial Corporation (NexGen) entered into an agreement in which Natixis will acquire all of the outstanding common shares of NexGen for CA$7.25 per common share, for an enterprise value of approximately CA$35 million.  The CA$7.25 price per share represents a 107% premium to NexGen’s closing share price of CA$3.50 on October 23, 2014, the last trading day before announcement of the transaction.

The transaction will be completed by way of a statutory plan of arrangement pursuant to the Business Corporations Act (Ontario). The closing of the transaction is expected to occur in January 2015 and is subject to customary closing conditions, including Ontario court approvals, a favorable vote of at least two-thirds of the votes cast by NexGen shareholders and applicable regulatory approvals. 

NexGen will seek approval for the transaction from its shareholders at a special meeting, which it expects will be held close to year-end.  The arrangement agreement includes customary non-solicitation provisions applicable to NexGen and provides for the payment of a CA$1.75 million break-up fee to Natixis if the transaction is terminated in certain circumstances. 

NexGen is a Toronto-based asset management with more than CA$919 million in assets under management as of September 30, 2014.  Natixis manages more than $930 billion in assets as of June 30, 2014.

To view the press release, please click here.


Categories

Investment Manager M&A, Transactions