Desjardins reaches $750 million deal with Guardian

IDC Worldsource Insurance Network Inc. (IDC), one of the largest life insurance managing general agencies (MGA) in Canada;
Worldsource Financial Management Inc. (WFM), a mutual fund dealer; and
Worldsource Securities Inc. (WSI), a full-service investment dealer.

Combined, the three acquired companies serve more than 5,000 independent advisors in the Canadian insurance and financial advice markets. Desjardins has committed to maintaining the independence of advisors and intends to retain the management and employees of IDC, WFM, and WSI. It plans to run the three companies as stand-alone entities.

“This acquisition strengthens Desjardins in the important life insurance and wealth management sectors across Canada,” said Guy Cormier, president and CEO of Desjardins Group. “On the insurance side, it extends our market reach and positions us as a leader in life insurance independent distribution in Canada. On the financial advisory side, the mutual fund and securities dealers will enhance and strengthen our distribution of retail investment products.

“With this added bench strength, Desjardins will be able to serve more Canadians and achieve critical mass to generate the financial flexibility to innovate and invest to better meet the needs of our members, clients and advisors.”

George Mavroudis, president and CEO of Guardian, said the transaction will “unlock meaningful value” for Guardian shareholders, while enabling the company to focus on its core investment management business and key clientele in institutional, retail, and private wealth.

“We’re proud of the quality of wealth businesses we have built,” he said. “Our success has been made possible by remaining patient and building long standing trusted relationships between advisors and our company. This was all made possible due to the strong leadership and collaborative efforts of our dedicated executive team, employees and advisors.

“At the same time, we take great comfort in having Desjardins succeed us as owners of these businesses. Desjardins has the vision, resources and long-term commitment to offer the employees and advisors an environment to thrive and reach even greater levels of success.”

The transaction remains subject to customary purchase price agreements and regulatory approvals, and is expected to close in the first quarter of 2023.