Canadian financial services company EQB has taken a significant step into asset management by acquiring ACM Advisors, an independent firm specializing in pooled commercial mortgage funds. With approximately 4.8 billion Canadian dollars ($3.51 billion) in assets under management, ACM Advisors brings a strong financial foundation to EQB's portfolio.
Through its subsidiary Equitable Bank, EQB has signed definitive agreements to purchase a 75% interest in ACM Advisors in a cash-and-shares transaction. This strategic move is expected to have a positive impact on EQB's earnings per share in its first year.
The acquisition of ACM Advisors marks a pivotal moment for EQB as it broadens its services into wealth management. This expansion not only diversifies EQB's earnings but also adds over 2,000 investor and borrower clients to its growing network.
To ensure operational independence, ACM Advisors will function as a separate subsidiary within EQB, distinct from Equitable Bank. The acquisition will be supported by EQB's existing lending facilities and a portion of its shares.
Pending regulatory approvals, EQB anticipates the completion of the acquisition before the end of 2023.