Scotiabank has agreed to acquire MD Financial Management—a financial services provider to doctors and their families—from the Canadian Medical Association (CMA) for $2.585 billion.
The bank will operate MD Financial Management as a stand-alone brand within Scotia Wealth Management.
Once the deal closes, CMA will exclusively promote Scotiabank as the preferred provider of financial products and services to physicians and their families in Canada.
MD Financial Management recently launched a robo-advisor so Scotia won’t need to create its own from scratch if it planned on starting one.
The bank will issue 19.7 million common shares at $76.15 per share to help pay for a portion of the deal. Its stock closed at $78.24 on Thursday.
The acquisition is expected to close in Scotiabank’s fiscal fourth quarter.