Alberta's ATB Financial in talks to buy investment bank Cormark Securities

Globe and Mail

11-07-2025

ATB Financial is in talks to acquire Cormark Securities Inc., according to sources familiar with the process, a takeover that would make the Alberta government-owned financial institution a national player in a sector consolidating around the banks and boutique advisory firms.
If Edmonton-based ATB Financial can close the purchase, which is estimated to cost more than $35-million, it would mark a significant expansion for a provincial player traditionally focused on raising money for oil patch clients.
The two companies are still negotiating, and a deal may not be concluded, sources say.
Toronto-based Cormark, owned by its 100 employees, is one of the few remaining independent dealers offering its clients - companies and institutional investors - a full menu of services, including stock trading, sales and research.
The downturn in financing activity at small- to mid-sized public companies, along with a two-year drought in initial public offerings, prompted Cormark executives to launch talks with potential partners and buyers, including ATB Financial, according to five sources familiar with the sales process.
The Globe and Mail agreed not to name the sources because they are not authorized to speak for Cormark and ATB Financial.
Over the past two years, Cormark pitched at least two other potential buyers - St. Petersburg, Fla.-based Raymond James Ltd. and Canadian Western Bank, which was headquartered in Edmonton - prior to opening talks with ATB Financial, according to two of the sources. In February, National Bank of Canada bought Canadian Western.
ATB said Friday it had no comment on the talks.
'Like many organizations, ATB continually explores various strategic options to enhance our business growth and shareholder value. It is not appropriate to comment on rumours or speculation,' the company said in an e-mailed statement.
Cormark chief executive officer Susan Streeter also declined to comment Friday on a potential transaction.
Cormark has an estimated $35-million in capital and its employee owners are targeting a premium on this capital in a sale, according to one source.
There are differences in the cultures of ATB Financial, which owns energy-focused investment bank ATB Capital Markets, and Cormark, which serves a broad array of mid-sized companies. Some Cormark employees may choose to depart, rather than work for a government-owned financial institution, three of the sources suggested.
ATB Financial has previously used acquisitions to expand its business. In 2024, the company bought BCV Asset Management Inc., a Winnipeg-based fund manager with $5.8-billion in assets under management. When ATB Financial chief executive officer Curtis Stange announced the BCV purchase, he said: 'ATB Financial has been pursuing new opportunities to partner with leading firms that will create long-term value for our clients.'
Between 2018 and 2020, ATB Financial acquired full control of investment bank AltaCorp Capital after the death of founder George Gosbee, then renamed the dealer ATB Capital Markets.
Cormark brands itself as the Canada's leading mid-market investment bank, a position that means the dealer competes with both far larger domestic and foreign banks and smaller advisory firms that avoided running expensive trading desks, which face rising compliance costs.
Cormark has offices in Toronto and Calgary. The firm's analysts cover 240 companies and the dealer has helped raise more than $100-billion for corporate clients in the past decade.
In the first half of the year, Cormark led nine stock sales that raised a total of $270-million, which ranked 10th among domestic investment banks, according to data from LSEG Data & Analytics.
Cormark accounted for 2.5 per cent of domestic underwriting done so far this year. Market leader RBC Capital Markets had a market leader 26-per-cent share of stock sales. The largest domestic independent investment bank, Canaccord Genuity Group Inc., held a 7-per-cent share, leading 20 equity offerings.
Toronto-based Canaccord Genuity built its platform by both advising on deals and acquiring wealth management businesses and now has a $1.1-billion market capitalization. Cormark has steered clear of hiring financial advisors and fund managers.
Cormark was co-founded in 1981 as Sprott Securities by financier and gold bug Eric Sprott. In 2000, Mr. Sprott departed to devote his attention to the money management company that still sports his name, Sprott Inc., which runs US$35-billion of funds investing in commodities such as gold, silver and uranium. In 2007, employees rebranded the investment dealer Cormark.
Consolidation among Cormark's rivals included the sale of GMP Capital Inc. to St. Louis-based Stifel Financial Corp. in 2019, and Toronto-Dominion Bank's purchase of Newcrest Capital Inc. in 2000. Two investment banks with a client base similar to Cormark's - PI Financial Corp. and Echelon Wealth Partners Inc. - merged in 2023 and rebranded as Ventum Financial Corp.
with files from James Bradshaw