Wealthsimple Financial has acquired Canadian ShareOwner Investments, an automated investment manager.
Toronto’s Wealthsimple says the acquisition is another example of the growing Canadian financial technology sector continuing to encroach on incumbent players.
The combination will position Wealthsimple as the only automated investing service that controls the end-to-end investment experience for clients, from trade execution and custody to portfolio construction and advice.
“This deal accelerates our mission to make smart investing accessible to everybody,” said Wealthsimple CEO Michael Katchen. ”It means we can move faster to bring innovation to Canada’s financial industry, and we’re adding complementary technology, like fractional shares, that will help deliver a superior experience to our clients.”
ShareOwner has been providing independent investment education and low-cost investing services to retail investors since 1987.
ShareOwner CEO Bruce Seago said that ”the partnership with Wealthsimple means ShareOwner can continue to innovate with increased speed and confidence.”
The transaction is subject to standard regulatory approvals.
After launching in September 2014, Wealthsimple now manages 10,000 clients and $400 million in client assets.