National Bank to acquire TD back office ops for $250m

National Bank to acquire TD back office ops for $250m

National Bank to acquire TD back office ops for $250m

National Bank of Canada will acquire TD Waterhouse Institutional Services – the larger bank’s back-office service provider – for $250 million.

The TD unit provides custody, trading, clearing, settlement and record keeping services for independent Canadian based registered portfolio managers and introducing brokers. It will be joined with National Bank's Correspondent Network (NBCN).

"Our correspondent network is today a leader in Canada's wealth management landscape as a provider of services which support over 140 independent market intermediary portfolio managers, brokers and dealers, who collectively serve over 350,000 client accounts and manage client assets of over $50 billion,” said National Bank Financial co-president and co-chief executive Luc Paiement.

With the acquisition, National Bank will add over 260 additional market intermediaries who serve over 130,000 client accounts and manage approximately $34 billion in assets, he added.

The $250 million purchase price is subject to a price adjustment mechanism based on asset retention. Closing is expected to occur later this year, subject to regulatory approvals and other transaction terms and conditions.

Mushtak Najarali, senior vice president of TD Waterhouse Institutional Services, said "I am confident our clients and our employees will continue to prosper under the stewardship of National Bank."