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Canaccord Genuity Group Inc. Acquires Leading U.S.-based Advisory Firm Petsky Prunier

Nachrichtenquelle: PR Newswire (engl.)
14.02.2019, 01:01  |  626   |   |   

Agreement brings complementary advisory expertise in Technology and Healthcare sectors and provides capital light and high margin critical mass to the Company's U.S. operations

TORONTO and NEW YORK, Feb. 14, 2019 /PRNewswire/ -- Canaccord Genuity Group Inc. ("Canaccord Genuity", the "Company") is pleased to announce that in an asset-based transaction, it has acquired Petsky Prunier, a preeminent boutique M&A advisory firm based in New York. This acquisition underscores Canaccord Genuity's commitment to adding scale to its fixed cost base in the U.S. and diversifying its revenue streams, while enhancing its client offering to capture greater market share in its core areas of strength.

Founded in 1999, Petsky Prunier has built a leading U.S.-based investment banking practice with a disciplined focus on the mid-market Technology, Media, Marketing, Information & Services and Healthcare industries. In 2018 Petsky Prunier executed more than 30 strategic advisory transactions for mid-market companies and the firm has achieved number one ranking by Bloomberg for the number of Mid-Market Internet & Advertising1 transactions in the United States for seven consecutive years. This acquisition is expected to be accretive to Canaccord Genuity's adjusted2 earnings during the first year of operation. 

"Our U.S. capital markets business has become an increasingly stronger regional competitor and this acquisition advances our priority of investing in areas of higher margin potential, as we continue to position our Company for increased stability and long-term profitability," said Dan Daviau, President & CEO, Canaccord Genuity Group Inc. "The addition of Petsky Prunier creates an exceptional opportunity for our North American capital markets business, while simultaneously enhancing long-term value for our partners and shareholders."

"We are delighted to welcome Petsky Prunier's extraordinary team of professionals to our U.S. Capital Markets business and we look forward to meaningfully increasing our impact in the North American mid-market," said Jeff Barlow, President, Canaccord Genuity LLC. "This strategic combination creates a powerful offering for our clients, who will benefit from our significantly enhanced advisory capability and reach in addition to the globally integrated sales, trading, and equity research capabilities that our platform provides."

To ensure a seamless transition for Petsky Prunier clients and employees, Sanjay Chadda, Partner and Managing Director of Petsky Prunier will join the management operating committee of Canaccord Genuity LLC and co-lead the U.S. investment banking group and the U.S. technology, media, marketing and information services practice. In this capacity, he will continue to focus on existing and new client mandates.  All existing employees of Petsky Prunier will continue with the combined firms.


1 2011-2017, based on number of deals announced valued at $500 million or less. Internet and Advertising is defined by Bloomberg

2 Adjusted earnings is a non-GAAP, non-IFRS measure generally referred to by the company as net income excluding significant items. Refer to non-IFRS measures in the Company's MD&A.


"On behalf of my partners and especially our founders Michael Petsky and John Prunier, we are pleased to have found an enterprise that is a natural fit with the strong culture and excellent reputation that we have built at Petsky Prunier," said Sanjay Chadda, Partner and Managing Director of Petsky Prunier LLC. "Canaccord Genuity provides an ideal partnership structure and a strong, independent platform for our growth, as we continue to create outstanding value for the business owners and private equity firms that we serve."

Freeman & Co. LLC was financial advisor to Petsky Prunier and legal advice was provided by Winston and Strawn LLP. Legal advisors to Canaccord Genuity LLC were Debevoise & Plimpton LLP.


Canaccord Genuity has acquired 100% of the business of Petsky Prunier LLC in an asset purchase for initial consideration of $40.0 million (US$30.0 million) in cash and $20.0 million (US$15.0 million) in common shares of Canaccord Genuity Group Inc. to be issued over a three-year period. Additional contingent consideration of up to $53.2 million (US$40.0 million) will be paid in cash over a four-year period subject to meeting certain revenue targets over that period. For the year ended December 31, 2018, Petsky Prunier generated revenue of US$43.0 million. All Petsky Prunier partners have entered into employment agreements with Canaccord Genuity.

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