Desjardins Group has agreed to acquire Guardian Capital in an all-cash transaction valued at about $1.7 billion.

If the proposed deal is completed, Montreal-based Desjardins will take Toronto-headquartered private.

Desjardins said the proposed acquisition will strengthen its position in asset management across Canada and internationally. The firm acquired Guardian’s life insurance, mutual fund and investment-distribution business in 2023.

The proposed deal is expected to increase Desjardins’ assets under management to $280 billion.

“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 Guy Cormier, president and CEO of Desjardins. “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.”

Guardian CEO George Mavroudis said the definitive agreement marks a “pivotal opportunity” to align with a “strong strategic partner.” Together, Desjardins and Guardian will be better equipped to realize their growth ambitions, he added.

“The transaction, with its significant cash premium, is an exceptional outcome for Guardian shareholders many of whom have been patient long-term investors,” said Mavroudis. “We are immensely proud of our nearly 60-year legacy as a publicly listed company which has generated an approximately 18% annual total return to shareholders over the last 15 years. 

The proposed deal is slated to close in the first quarter of 2026.

Photo: Desjardins