Date Closed

April 23, 2010

Lead Office

Toronto

Value

352.70 Million CAD

On April 23, 2010, Canaccord Financial Inc. (“Canaccord”) announced the completion of its acquisition of Genuity Capital Markets and certain of its affiliates (“Genuity”), the leading independent advisory and restructuring firm in Canada. 

The consideration for the acquisition of Genuity consisted of 26.5 million Canaccord common shares and $30 million of cash. In addition, the vendors will receive up to $28 million as a working capital adjustment subsequent to closing. All of the Canaccord common shares issued as part of the purchase price were placed in escrow at closing and will be released ratably over five years. Genuity’s ten largest partners have entered into employment, non-competition, non-solicitation and standstill agreements. Virtually all of the other Genuity partners became Canaccord Genuity employees on closing.

Genuity Capital Markets is Canada’s leading partner-owned investment bank. Genuity was formed in 2005 by a group of principals who are among the most experienced in the industry and have helped shape the Canadian capital markets over the last 25 years. They have led many of the largest and most complex merger & acquisition, restructuring and financing transactions in Canada. Genuity provides clients with corporate finance, mergers & acquisitions, restructuring, sales & trading and research services with senior level attention, creative ideas and effective solutions leveraged by longstanding relationships and astute market insight. Genuity has offices in Toronto, Montreal, Vancouver, Montreal, New York and Boston.

McCarthy Tétrault LLP represented Genuity Capital Markets and the vendors in the acquisition of Genuity Capital Markets.