(Reuters) - Sun Life Financial (SLF.TO) (SLF.N), Canada's No. 3 insurer, said it agreed to buy the minority shares in its McLean Budden investment management unit for about C$144 million and transfer the business to its MFS Investment Management (MFS) unit.
The minority shares represent a 32.4 percent of ownership of McLean Budden, which will become a wholly owned subsidiary of MFS.
The transaction will include an additional consideration based on performance targets being achieved, the company said in a statement.
Sun Life, which expects the deal to close in November, said Martin Beaulieu, currently vice chairman and head of global distribution at MFS, will become chief executive of the new unit.
As of August 31, the combined assets under management of MFS and McLean Budden were C$261 billion, the company said in the statement.
Toronto-based Sun Life has extensive operations in Canada, the United States and Asia. As a seller of insurance and wealth-management products, it competes with Manulife Financial (MFC.TO) and Great-West Lifeco (GWO.TO).
Shares of the company were trading up 2 percent at C$25.02 on Thursday morning on the Toronto Stock Exchange. Sun Life's New York-listed shares were also up 2 percent at $24.23. (Reporting by Amruta Sabnis in Bangalore; Editing by Sriraj Kalluvila)