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Highlights
- CI Financial (TSX:CIX) has completed the acquisition of Budros, Ruhlin & Roe, Inc. (BRR).
- The CIX stock has surged by about 61 per cent year-to-date (YTD) and outperformed the Toronto Stock Exchange 300 Composite Index.
- In the second quarter of 2021, CI Financial reported record financial results and achieved record quarterly adjusted earnings per share (EPS) of C$ 0.75 apiece.
Stocks of CI Financial Corp. (TSX:CIX) gained the attention of potential investors in Canada as the company's name surfaced in the list of trending companies in the country. On Monday, October 4, CI Financial announced that it has completed the acquisition of Budros, Ruhlin & Roe, Inc. (BRR).
BRR is an Ohio-based registered investment advisor (RIA) with US$ 3.5 billion in assets and it primarily serves clients and foundations with a high net worth.
CI Financial is expected to benefit from the acquisition as BRR has emerged as one of the leading investment management and financial planning companies with over 800 clients. In addition, the acquisition is expected to increase CI Financial’s US wealth management assets to C$ 103 billion.
On August 10, CI Financial had first announced the agreement to acquire BRR. The Toronto-based financial services company offers wealth management products and has major business operations in Canada.
By the end of June, CI Financial had assets under advisement worth C$ 159.3 billion, and another C$ 144.8 billion in fund assets under management.
Is CI Financial (TSX:CIX) the best stock under $30?
The financial services company is growing rapidly, and it is in an expansion mode. Before completing the acquisition of BRR, CI Financial had completed the acquisition of Portola Partners Group LLC, a wealth management firm based in Silicon Valley.
Also read: CI Financial to acquire majority stake in Aligned Capital
Portola is involved in providing investment and wealth planning services to ultra-high-net-worth families and managed US$ 5.2 billion in assets. On September 15, CI Financial announced the establishment of its US headquarters in Miami.
In the second quarter of 2021, CI Financial reported record financial results and achieved record quarterly adjusted earnings per share (EPS) of C$ 0.75 apiece. The adjusted EBITDA was C$ 242.3 million in Q2 2021 in comparison to C$ 187 million in Q2 2020.
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Bottom line
Priced at C$ 25.38 per share at market close on October 4, the CIX stock was up by 70 per cent in comparison to the 52-week low of C$ 14.91 apiece on January 5.
Also read: 5 TSX financial stocks to watch as Libs plan corporate tax rate hike
CIX stock has surged by about 61 per cent year-to-date (YTD) and outperformed the Toronto Stock Exchange 300 Composite Index’s growth.
Last month, the CIX stock achieved a 52-week high of US$ 26.99 per share and it could grow further if investors take interest in the company due to its expansion plans.
