OTTAWA (dpa-AFX) - IGM Financial Inc. (IGIFF, IGM.TO), a diversified wealth and asset management company, on Tuesday announced that it will invest an additional $96 million in Wealthsimple as part of the latter's equity financing round of up to $425 million.
The transaction is expected to close in the fourth quarter of 2026.
The company said the financing includes a $300 million primary offering and a secondary offering of up to $125 million.
The company said the fair value of its investment in Wealthsimple will increase by $341 million, or 13 percent, from $2.59 billion to $2.93 billion.
Following the transaction's closing, the company will hold a 25.1 percent stake in Wealthsimple, valued at $3.03 billion, including the additional investment.
The transaction is led by GIC, with participation from the company, Power Corporation of Canada, ICONIQ, CPP Investments and Inovia.
The company will remain Wealthsimple's single largest shareholder.
The financing will support Wealthsimple's growth, including product expansion and continued investment in technology infrastructure.
On Tuesday, IGM Financial Inc. closed trading 1.08% higher at CAD 81.73 on the Toronto Stock Exchange.
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