Scotiabank could be just what the doctor ordered. The banking group is to acquire MD Financial and entering into a 10-year arrangement with the Canadian Medical Association.
MD Financial is Canada's leading provider of financial services to physicians and their families, with more than $49 billion in assets under management and administration.
The deal involves Scotiabank paying $2.585 billion for MD and entering into an agreement where the CMA will exclusively promote Scotiabank as the preferred provider of financial products and services to physicians and their families in Canada.
"MD has served the distinct financial needs of Canada's physician community for decades and has delivered strong results," said Brian Porter, President and CEO at Scotiabank. "Through this transaction, MD clients will benefit from a greatly expanded range of financial solutions, including access to expertise across our wealth and asset management businesses. We look forward to providing customized banking services to a wider segment of the physician community in support of their unique needs."
Best possible partner
"With its existing capabilities in investment management and digital banking, its track record of philanthropy, and its team-based approach to wealth management that addresses the entirety of a client's life, Scotiabank is the best possible partner to help continue MD's proud history of meeting the specific needs of Canada's physicians and their families," said Brian Peters, MD's President and Chief Executive Officer.
Subject to regulatory approvals and closing conditions, the Acquisition is expected to close in fiscal Q4 2018.
BMO Capital Markets served as financial advisor to the CMA and Stikeman Elliott LLP served as legal advisor. PwC provided an independent fairness opinion to the CMA Board of Directors in connection with the transaction.
Scotiabank's Global Banking and Markets Division and J.P. Morgan acted as financial advisor to Scotiabank on the Acquisition while Torys LLP acted as Scotiabank's legal advisor.
Copyright Bloomberg News
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