Raymond James is acquiring Canadian wealth manager MacDougall MacDougall & MacTier.
Raymond James’s purchase of the Montreal-based company, known as 3Macs, will create an investment dealer with more than C$33 billion ($25 billion) in assets under administration, the St. Petersburg, Fla.-based firm said Thursday in a statement that didn’t disclose terms. The transaction is expected to be completed later this year.
3Macs has 72 advisers overseeing approximately C$6 billion in client assets under administration, according to Raymond James.
This latest deal comes as Raymond James is in the process of acquiring Deutsche Bank's U.S. Private Client Services unit, which has about 400 advisers and staff operating from lucrative markets where Raymond James has a light footprint, such as New York. That acquisition is also expected to close later this year.
Raymond James intends to operate the Deutsche unit as Alex. Brown, the name of the U.S. business that Deutsche previously acquired.
Similarly, the firm says it plans to operate 3Mac under its current name as a division of Raymond James. 3Macs roots go back to 1849, when Montreal broker Donald Lorn MacDougall and his brother established the MacDougall Brothers, according to the money manager’s website. The firm merged with MacTier & Co. in 1960.
3Macs’ CEO Randy Ambrosie is transitioning with the deal and will report to Paul Allison, Chairman & CEO of Raymond James Ltd., the firm says.
This is not the firm's first acquisition of a Canadian firm. Raymond James has operated in Canada since January 2001 and currently employs over 1,000 people, including over 370 advisers and portfolio managers.
Allison says that the acquisition will "significantly accelerate our growth strategy across Canada."
With additional reporting from Bloomberg.