Purpose Financial agreed to buy a division of Wealthsimple Inc. for an undisclosed sum to expand its digital platform for financial advisers.
Purpose Advisor Solutions, which is majority-owned by Toronto-based Purpose Financial, will purchase Wealthsimple For Advisors, creating one platform designed to unlock new business opportunities for independent advisers and investment firms in Canada.
The transaction will also allow Purpose to accelerate and expand its investments in wealth-management technology. Purpose Advisor Solutions has $500 million of assets under management. The combined entity will have $1.5 billion of assets.
“Both our firms have a common vision to enable advisers to thrive in a digital marketplace,” Jeff Gans, chief executive officer of Purpose Advisor, said in a statement Thursday. “We have spent significant time understanding the business needs of holistic wealth advisers.”
Retail and institutional investors are seeking to incorporate more digital tools into their investment strategies to offer lower-cost products.
“Our goal is to elevate the quality of and access to advice in Canada,” said Dave Nugent, chief client officer at W4A.