Unicredit passes on €2bn of money raised in rights issue to Bank Austria

CANACCORD Financial yesterday announced a $285.9m (£189.8m) deal to buy up Canadian advisory firm Genuity Capital Markets, in a drive to boost its business across Canada, the US and here in the City of London.

Under the terms of the deal, Canaccord will pay 26.5m of its own shares and $30m of cash for Genuity, in addition to up to $28m as a “working capital adjustment”.

The firm said it expects the acquisition to be immediately accretive to earnings.

Giles Fitzpatrick, the president of broking subsidiary Canaccord Adams in the UK, said the deal would allow the firm to improve its advisory offering and restructuring practice, as well as helping the UK arm to raise funds in North America for clients looking either to list across the pond or to widen their shareholder base.

“From a UK perspective, we’re like-sized with firms such as Numis, and the deal will increase our US presence, further differentiating our offering from our rivals,” Fitzpatrick added.

Genuity was founded in 2005 and employs some 135 staff. It is the leading independent adviser in Canada, having acted as lead manager on 13 underwriting transactions in 2009 with an average deal size of $109m.

Genuity chief executive David Kassie now becomes co-chairman of the enlarged firm, along with Canaccord’s Peter Brown.