National Bank to Acquire Embark in Deal Estimated at $226 Million

National Bank of Canada agreed Nov. 6 to acquire Embark Student Corp., a Canadian provider of Registered Education Savings Plans (RESPs), in a deal with an estimated purchase price of $226 million. The bank expects the transaction to broaden its reach in Ontario and Western Canada and enhance its retail banking franchise, while aligning with its savings and investment advisory strategy.

Embark administers RESPs for about 436,000 beneficiaries and has more than $6 billion in assets under management. RESPs are Canadian savings arrangements for postsecondary education, and eligible plans can receive federal education grants. Those figures describe Embark’s current operations.

The estimated price is subject to working-capital adjustments, and no currency was specified. National Bank expects the transaction to close by mid-fiscal 2027, pending approval from the Ontario Superior Court of Justice, regulatory approvals and other customary conditions. The transaction is structured as a plan of arrangement under the Canada Business Corporations Act.

A wholly owned National Bank subsidiary is to acquire Embark’s shares from Embark Student Foundation, the provider’s sole shareholder. At closing, the nonprofit Foundation is to transfer its RESP undertaking and related obligations to Embark. The Foundation’s role as plan promoter is expected to transfer to Embark in mid-2027, subject to required government approvals.

National Bank expects the acquisition to reduce its Common Equity Tier 1 ratio by about 10 basis points at closing. Customers do not need to take action, and plan services, investments and grant applications are expected to continue without immediate changes.