Global Maxfin buys Octagon Capital

Global Maxfin Capital Inc. has announced the acquisition of Octagon Capital Corporation’s retail full-service investment dealer. The deal is expected to close before the end of January.

“This deal is just part of Global’s efforts to grow the firm both organically and through acquisitions,” says Sam Bouji, president and CEO of Global. “We believe growth through the individual advisor. Global will grow the retail market significantly, and we will still look at how to take advantage of the investment banking [market].”

Bouji says the Octagon purchase will add about 20 advisors, based in Calgary and Toronto, and he predicts the transaction will significantly boost the number of accounts with Global.

“Combining Octagon’s retail operations with Global is mutually beneficial and very significant,” says Sam Collins, executive vice-president of Global. “Octagon’s investment advisors will be able to offer more choices to their clients with a range of Global products and services, while Global can strengthen its retail presence in Toronto and Calgary.

“What really attracted us to them was that we’re both coming from a very similar environment. We’re both very entrepreneurial firms. It’s really a blending of two like-minded firms.”

Global Financial consists of about 1,700 salespeople across the country, spread across its four operating units. Assets under administration and management exceed $2 billion.

The integration of the firms will commence February 1, and will take between four to six weeks to be completed.

“There are some compliance things we have to deal with. We have to put a separate entrance in and put some walls up, because we are going to be operating as two separate IIROC licensed firms,” says Collins.

“The key is that there will be as minimal change for the Octagon client and the Octagon advisor as possible. They’re going to remain at the same seats that they’re at, in the same offices. For all intents and purposes it will be the same reporting structure. The only thing that’s really going to change is the sign in the front hall and their business cards.”

The acquisition appears to be part of an overall expansion by the Global family of companies; Global Maxfin Investment Inc. recently completed its acquisition of the Professional Investment Services (Canada) Inc.

“The good thing about Global is that we can do more than one acquisition at the same time because each one of the firm members in the Global family has its own management team and they don’t interrupt the others,” said Bouji. “We are not focusing on one, we are on the total front of Global and we are pushing in each line of the business toward each opportunity that we have.”

(01/19/10)