CI Financial Doubles U.S. Presence and Plans to Grow Faster

CI Financial (TSX: CIX) is Canada’s second largest fund management company. It has aggressively acquired U.S. companies over the last year to double its presence and become one of the largest operators in the United States. In its aggressively expanding into the U.S., it may just be setting itself up as an acquisition target by a larger institution.

In the last week the stock price signlificantly increased from $16.14 on Feb 1st to a high of $18.13 on Feb 5 (more than 12% increase), indicating increasing interest by investors.

Kurt MacAlpine, chief executive officer at CI Financial, appeared on BNN Bloomberg to discuss the firm’s 14th U.S. acquisition of Segall Bryant & Hamill. MacAlpine mentioned that the firm’s strategy to expand south of the border remains a top priority. See the Bloomberg Video.

Mergers and Acquisitions

CI Financial has a long history of growth through acqusition as can be seen by its track record.

FirmYear EstablishedYear of AmalgamationMerged Into
BPI Financial Corp19931999CI Global Asset Management (CI Investments)
Assante Corp19952003CI Assante Wealth Management (Assante Wealth Management)
Synergy Asset Management19972003CI Global Asset Management (CI Investments)
Rockwater Capital19952007CI Global Asset Management (CI Investments)
Hartford Investments20002010CI Global Asset Management (CI Investments)
First Asset Capital20002015CI Global Asset Management (CI First Asset)
Sentry Investments19972017CI Global Asset Management (CI Investments)
BBS Securities20082017CI Investment Services (BBS Securities)
Wealthbar20142020CI Direct Investing
Balasa Dinverno Foltz20012020CI Private Wealth
Doyle Wealth Management20052020CI Private Wealth
Robertson, Griege & Thoele Wealth Advisors19852020CI Private Wealth
The Roosevelt Investment Group19712020CI Private Wealth
Source: Wikipedia

Potential Acquisition Target

With a market captialization of $3.75 billion and with an attractive Price to Earnings (P/E) ratio of 7.54 and dividend yield of 4.05%, this company would be a great acquisition for a financial institution wanting to capture a significant market share in the U.S. market.

If another firm decides to acquire CI Financial, the stock price will be impressive. Meanwhile, investors are getting a good dividend on the stock.

Disclosure

The author, principals of MetroActive and MetroActive members hold shares in CI Financial and some members may also be employed by CI Financial or provide services to CI Financial. As of the publishing of this post CI Financial is not a sponsor, member or client of MetroActive.

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