Canaccord Financial, the Toronto-based financial services firm, has partnered with Australian boutique equities advisor BGF Equities to expand its operations into Hong Kong and Australia. 

Under the terms of the deal, Canaccord takes a 50 per cent equity stake in BGF, which has 40 employees and offices in Melbourne, Sydney, and Hong Kong. The transaction, approximately worth A$40 million ($43.5 million), is expected to close by the fourth quarter. BGF will then be rebranded into Canaccord BGF and the remaining 50 per cent interest will be available to the Canadian firm in five years, said Canaccord in a statement. 

The new entity will provide an expanded offering of investment banking, sales and trading, research and wealth management services to corporate, institutional, and private clients in the Asia Pacific. Following the merger, Canaccord gains the right to appoint three of the new firm's six directors.

Canaccord has 46 offices globally, including 32 wealth management offices in Canada. BGF Equities was founded in 2007 and has since raised about A$640 million for its clients.