Canada-based Canaccord Financial has entered an agreement to acquire the wealth management business of Eden Financial, the UK private client investment manager so as to expand its UK wealth management platform: Collins Stewart Wealth Management.

Canada-based Canaccord Financial has entered an agreement to
acquire the wealth management business of Eden Financial, the UK private client investment management business
so as to expand its UK
wealth management platform: Collins Stewart Wealth Management.

Canaccord is paying a consideration of up to £12.8 million in
cash, of which £7.68 million will be payable upon completion and up to £5.12
million after 12 months, subject to revenue retention and revenue mix thresholds.
The acquisition is subject to FSA approval.

Based in London, Eden Financial is an independent,
owner-managed private client investment management business with £835 million in
assets under management on behalf of 2,500 clients (as at 31 August 2012).

As part of the payment, further incentives of up to £4.0
million have also been set to reward further revenue growth and meeting
revenue mix targets, Canaccord said in a statement today.

Once Eden Financial becomes part of Canaccord’s platform, it
is expected that assets under management at Collins Stewart Wealth Management
(Canaccord’s UK, Europe and offshore wealth management operations) will rise
to around £9.0 billion. Globally, on a combined pro-forma basis including
assets from Eden Financial, total client assets managed and administered by
Canaccord’s wealth management businesses would have been C$27.3 billion as at
30 June 2012.

Eden Financial will initially retain its brand. It is
expected that all of Canaccord’s UK,
Europe, and offshore wealth management
operations will be rebranded to Canaccord Wealth Management in 2013. Upon
completion of the acquisition, the regulated entity of Eden will change its legal name to Collins Stewart
Wealth Management Limited.