Financial company iA set to acquire wealth management firm RF Capital
iA Financial Group, a leading Canadian financial services company, has announced the acquisition of RF Capital Group Inc., operating under the Richardson Wealth brand. The deal, valued at $597 million, will see iA purchasing all outstanding common shares of RF Capital for $20.00 per share, and all outstanding Series B Cumulative 5-Year Rate Reset Preferred Shares for $25.00 per share.
The acquisition will add approximately $40 billion in assets under administration (AUA) to iA’s wealth management business, expanding its reach notably in the high-net-worth client segment and independent wealth management in Canada.
Financial Implications
The total purchase price includes $370 million in fully diluted equity value and $227 million in financial obligations of RF Capital. The deal equates to 6.7 times RF Capital’s fully synergized EBITDA for the 12 months ending March 31, 2025, and 1.5% of AUA as of June 30, 2025. iA expects the transaction to be core earnings neutral in the first year and contribute to an increase of at least $0.15 per share in core earnings by the second year.
Strategic Rationale and Benefits
For iA Financial Group, the acquisition supports its expansion strategy into targeted segments, especially high-net-worth clients, while enhancing its scalable distribution model and strengthening its position as a leading non-bank wealth platform in Canada.
For RF Capital (Richardson Wealth), advisors will continue to operate independently under the Richardson Wealth brand, but gain access to enhanced technology, product innovation, and operational scale enabled by iA’s resources. Anticipated cost synergies come from consolidating third-party providers, integrating corporate functions, and aligning technology and digital platforms, including AI capabilities. Revenue synergies are expected by leveraging complementary business models, expanding advisory networks faster, and combining open-architecture platforms for wealth management, capital markets, insurance, and advisory services.
Regulatory Approval and Closing
The transaction was approved unanimously by RF Capital’s Special Committee and Board of Directors after receiving fairness opinions and legal & financial advice. It remains subject to approval by RF Capital’s common and preferred shareholders, regulatory approvals, and customary closing conditions, with a planned closing expected in Q4 2025.
Goodmans LLP is providing legal counsel to RF Capital, while National Bank Financial is advising iA, with McCarthy Tétrault LLP acting as its legal counsel. CIBC Capital Markets is serving as the exclusive financial advisor to RF Capital, and National Bank Financial is providing financial advice to iA.
The acquisition will be financed through iA’s existing cash reserves. The advisors of RF Capital will continue to operate independently under the Richardson Wealth brand after the acquisition. Denis Ricard, president and CEO of iA Financial Group, affirmed iA’s commitment to the value of advice, stating that they aim to empower advisors with best-in-class tools and preserve their independence.
The acquisition is intended to help advisors assist clients in feeling secure about their financial future. RF Capital president and CEO Dave Kelly stated that the acquisition will unlock opportunities in technology, product innovation, and operational scale.
[1] iA Financial Group Press Release, [link to press release] [2] RF Capital Group Inc. Press Release, [link to press release] [3] GlobeNewswire, [link to GlobeNewswire article] [4] Financial Post, [link to Financial Post article] [5] BNN Bloomberg, [link to BNN Bloomberg article]
- The acquisition of RF Capital Group Inc. by iA Financial Group, valued at $597 million, is anticipated to bolster iA's wealth management business by adding approximately $40 billion in assets under administration, particularly expanding their reach in the high-net-worth client segment and independent wealth management in Canada.
- As a result of the acquisition, advisors operating under the Richardson Wealth brand will benefit from enhanced technology, product innovation, and operational scale provided by iA's resources, while maintaining their independence.
- Optimistic synergies are projected from consolidating third-party providers, integrating corporate functions, aligning technology and digital platforms, including AI capabilities, leveraging complementary business models, expanding advisory networks faster, and combining open-architecture platforms for wealth management, capital markets, insurance, and advisory services.
