Scotiabank has spent $2.5 billion to buy MD Financial Management, a company that provides financial planning, insurance, banking, investment and estate and trust services to Canadian medical doctors.
A public offering of 19.7 million common shares at $76.15 per share will fund a portion of the acquisition, the bank said in a written news release. The acquisition also includes a 10-year deal that will see the Canadian Medical Association exclusively promote Scotiabank as the preferred provider of financial products to physicians.
Scotiabank has made several acquisitions in recent months. The bank purchased a 68% stake in Chilean banking operation BBVA Chile, for $2.9 billion, and Citibank's consumer and small and medium enterprise operations in January for an undisclosed amount of money. Scotiabank also bought Canadian investment manager Jarislowsky Fraser for $950 million in February and a controlling interest in Peru's Va Banco Cencosud for about $130 million in May.
