The Canada Life Assurance Co. has signed a deal to acquire wealth management firm Investment Planning Counsel Inc. from IGM Financial Inc. for $575 million.
Canada Life says the IPC business is profitable today and the deal is expected to be modestly accretive after two years.
It estimates that transaction and integration costs of $25 million pre-tax are expected over 12 to 18 months after the deal closes.
The deal came as IGM announced an agreement to buy a 20.5 per cent stake in Rockefeller Capital Management, a U.S. independent financial services advisory firm, for US$622 million.
IGM is now Rockefeller's second largest shareholder, while Viking Global Investors remains the lead shareholder.
Canada Life parent company Great-West Lifeco Inc. and IGM are both part of the Power Corp. family of companies.
This report by The Canadian Press was first published April 4, 2023.
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