Canada-headquartered Canaccord Genuity Group has entered into a share purchase agreement to acquire Punter Southall Wealth through its UK wealth management business Crown Dependencies (CGWM UK).

On closing the deal, £163m will be paid to Punter Southall Group, alongside an equity interest comprising newly-issued shares in CWGM UK, it was announced today (14 December).

PSW will be acquired by CGWM UK with a minimum level of regulatory capital, with any surplus distributed to PSG by way of a pre-completion dividend.

In addition, there will be retention and incentive awards comprising cash and equity in CGWM UK with a combined attributed value of approximately £6m.

On closing of the acquisition, it is also expected that CGWM UK will add £100m to its existing bank facility, while HPS Investment Partners has agreed to make an additional investment in CGWM UK upon the purchase.

HPS will buy a new series of convertible preferred shares of CGWM UK worth £65.3m.

Punter Southall Wealth offers a broad range of advice and wealth management solutions to high net-worth individuals.

David Esfandi, chief executive officer of CGWM UK said: "Our acquisition of Punter Southall Wealth represents an exciting strategic opportunity to further develop our integrated wealth management business, adding national scale and exceptional capability to our advice-led offering."

He added that both firms were a "strong" cultural fit.

As part of CGWM UK, the investment professionals, financial planners, and clients of PSW will have access to the broad range of resources provided by CGWM UK and its broader global platform.

Jonathan Punter, chief executive officer of Punter Southall Group, said: "The market for financial advice to high net worth individuals is consolidating and we felt that Punter Southall Wealth would benefit from a larger partner which can take it to the next level of its development.

"After long and careful consideration, we chose Canaccord Genuity as the best partner for our clients and our people."

John Howard Smith, chief executive officer of Punter Southall Wealth, added: "Being part of a well-capitalised, international group provides good opportunities to grow our existing operations while providing continuity for our valued clients and the exceptional team we have."