* Acquires corporate finance arm of Midas Capital
* Aims to expand investment trust business in Scotland
* Financial terms of deal not disclosed
LONDON, Sept 23 (Reuters) - UK investment bank Canaccord
Adams, a subsidiary of Canada's Canaccord Capital Inc
Canaccord, which has said it plans to capitalise on the market downturn to expand its UK presence and recruit from rivals, said it would acquire UK fund manager Midas' subsidiaries Intelli Partners and Intelli Corporate Finance, a corporate advisory and broking boutique focused on investment companies and the asset management sector.
Intelli will add to Canaccord's existing secondary business
in the investment trust market, established when it brought an
investment trust team from rival Panmure Gordon
"The acquisition of Intelli provides our exceptional investment trust, sales and trading team with a primary product as well as a solid platform for our expansion strategy in Scotland," said Tim Hoare, CEO of Canaccord Adams.
Intelli, itself acquired by Midas in 2005, is currently retained financial adviser for 16 investment companies and over the last decade has been involved in more than 150 deals in the sector.
Canaccord Adams hired Giles Fitzpatrick, former chief executive of Fox-Pitt, Kelton, in June as part of efforts to boost its UK and European operations at a time of market turbulence which it says has provided opportunities to build market share and take prominence on the European market.
The UK, together with other activities outside Canada and the United States, made up just more than 16 percent of Canaccord Capital's revenue in the first quarter to the end of June.
Canaccord Adams, the international capital markets division, accounts for more than 60 percent of Canaccord Capital's revenue. (Reporting by Clara Ferreira-Marques, editing by Matthew Lewis)