Canada Life has announced that it reached an agreement to acquire Investment Planning Counsel (IPC), an independent wealth management firm, from IGM Financial.
A press release from the Great-West Lifeco subsidiary referred to the acquisition as a way to further extend its wealth management reach and capabilities, leading to the establishment of a single, end-to-end wealth platform over time.
IPC joins Canada Life’s existing wealth platforms as a well-established player in the Canadian wealth management industry, operating in both MFDA and IIROC platforms with 650 advisors.
Upon the deal’s completion, Canada Life will become one of the country’s largest non-bank wealth providers, with over 4000 advisor relationships and more than $85 billion in assets under administration.
“We are excited to welcome IPC to the Canada Life family and build on our strong Canadian franchise with a growing personal wealth business,” said Paul Mahon, president and CEO of Great-West Lifeco and Canada Life. “This acquisition positions Canada Life for strong organic growth and further investments in market consolidation that support our strategy. IPC’s wealth management solutions and advisor expertise will enhance our ability to meet the diverse and changing needs of Canadians and create a best-in-class experience for our advisors and their clients.”
“We’ve long believed in the value of advice, and IPC’s strong advisor relationships will help expand access to the trusted advice Canada Life is known for,” said Jeff Macoun, president and chief operating officer at Canada Life. “Together, Canada Life and IPC will offer independent advisors practice management, planning, and succession support that will help them ensure continuity of advice and service for clients. We are committed to supporting the growth and success of our advisors and helping them navigate the changing regulatory landscape.”
Under the terms of the transaction, Canada Life will acquire IPC for a total cash consideration of $575 million, subject to adjustments. The deal is set to close by the end of 2023 and is expected to be funded with available cash on hand.
“IPC founder Chris Reynolds and I are thrilled to embark on our next chapter of growth with Canada Life,” said Blaine Shewchuk, president and CEO of IPC. “The access to capital will support our ability to attract new advisors, provide innovative portfolio solutions, and continue to invest in helping advisors better serve their clients. Advisors will continue to enjoy the advantages that come with being part of an independent wealth firm, which includes an open architecture investment platform.”
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