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.
| Firm | Year Established | Year of Amalgamation | Merged Into |
|---|---|---|---|
| BPI Financial Corp | 1993 | 1999 | CI Global Asset Management (CI Investments) |
| Assante Corp | 1995 | 2003 | CI Assante Wealth Management (Assante Wealth Management) |
| Synergy Asset Management | 1997 | 2003 | CI Global Asset Management (CI Investments) |
| Rockwater Capital | 1995 | 2007 | CI Global Asset Management (CI Investments) |
| Hartford Investments | 2000 | 2010 | CI Global Asset Management (CI Investments) |
| First Asset Capital | 2000 | 2015 | CI Global Asset Management (CI First Asset) |
| Sentry Investments | 1997 | 2017 | CI Global Asset Management (CI Investments) |
| BBS Securities | 2008 | 2017 | CI Investment Services (BBS Securities) |
| Wealthbar | 2014 | 2020 | CI Direct Investing |
| Balasa Dinverno Foltz | 2001 | 2020 | CI Private Wealth |
| Doyle Wealth Management | 2005 | 2020 | CI Private Wealth |
| Robertson, Griege & Thoele Wealth Advisors | 1985 | 2020 | CI Private Wealth |
| The Roosevelt Investment Group | 1971 | 2020 | CI Private Wealth |
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.