Canadian finance co-op Desjardins Group has signed a definitive agreement for the acquisition of Guardian Capital Group Limited, a publicly traded global investment management company that serves institutional, retail and private clients through its subsidiaries.
Desjardins says this marks a “significant milestone” in its bid to strengthen its position in asset management across Canada and internationally. The news follows the acquisition of Guardian’s life insurance, mutual fund and investment distribution networks, which closed in 2023.
The deal will see Desjardins acquire Guardian for CA$68 per share in an all-cash transaction valuing Guardian at approximately $1.67bn. The transaction is subject to court, shareholders and regulatory approvals, as well as other customary closing conditions. Closing is expected to occur in the first quarter of 2026.
Desjardins says the move will unite Guardian with its own global asset management arm “to form a leading organisation with approximately $280bn in assets under management and advisement, “positioning it as a key player in the Canadian market and supports its expanding presence globally“.
“Desjardins has a clear and focused vision for growth in asset management, and this acquisition will strengthen our position in the Canadian financial services landscape,” said CEO and president Guy Cormier. “By combining our strengths with Guardian, we are building a leading platform with the scale, capabilities, and reach to serve investors in Canada and around the world. This is more than a transaction – it’s a strategic leap that reflects our enduring commitment to innovation, excellence and long-term value creation.
“For 125 years, Desjardins has evolved to meet the changing needs of Canadians. Today, we reaffirm our ambition to lead with purpose and create even greater benefit for our members and clients.”
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Under the deal, Guardian CEO and president George Mavroudis will be appointed CEO of the combined business and lead an executive team overseeing the strategic direction of the overall asset management business. Nicolas Richard, current president and COO of Desjardins Group Asset Management, will join that executive team.
“We are immensely proud of our 65-year legacy as a trusted and respected asset management company. This transaction marks a pivotal opportunity for Guardian to align with a strong strategic partner – one with exceptional financial resources and an even longer distinguished history in financial services”, said Mavroudis. “Together, we will be better equipped to realize our growth ambitions and continue delivering exceptional value to our clients as their needs evolve.”
Desjardins says the deal builds on a series of strategic moves that have driven its growth, including the 2015 acquisition of State Farm’s Canadian operations, significantly strengthening Desjardins’ insurance business.
In 2018, Desjardins partnered with Canada’s five credit union centrals, and with Co-operators-owned credit union service organisation Cumis, to create Aviso Wealth – a wealth management partnership, with over $145bn in assets under administration and management.
More recently came the acquisitions of Worldsource in 2023 and the Insurance Company of Prince Edward Island in 2024.
The news comes as Desjardins issued second-quarter results, with surplus earnings before member dividends of $900m, compared to $918m for the comparable period of 2024.
“This decrease in surplus earnings was primarily due to an increase in the provision for credit losses, due in particular to unfavourable developments in the economic outlook, related to the potential impact of trade disruptions,” said the co-op. “However, the personal and business services segment benefited from higher net interest income, mainly tied to growth in the loan portfolio, which, among other things, allowed the Group to surpass $500bn in assets.
“To support this sustained growth, Desjardins Group expanded its presence on international financing markets by issuing subordinated debt in Swiss francs and yen. Lastly, it should be noted that non-interest expense increased due to investments aimed at supporting business growth and enhancing the services offered to members and clients.“
