Desjardins Group, Canada's largest cooperative with nearly $200billion in assets, announced it will purchase up to 40% ofoutstanding shares of Qtrade Financial Group, an online brokerageplatform.

The agreement is between the credit union's subsidiary,Desjardins Financial Corporation Inc., and Qtrade, which hasprovided brokerage and wealth management platforms, services andsolutions to more than 180 credit unions and other financialinstitutions across Canada since 1999. The firm said it overseesapproximately $7.5 billion of client assets.

The Vancouver-based Desjardins said it will initially purchase between 25% and 40%of the outstanding shares of Qtrade from current security holdersand has the right to buy the remaining shares over the next sixyears.

The transaction is part of Desjardins' strategic plan to growits major business lines, the cooperative said. Upon thearrangement becoming effective, Qtrade, headquartered in Vancouver,will continue to operate independently with current leadership andunder its own brand name, according to Desjardins.

“This partnership will provide a number of other benefits overtime for our members and clients. For example, pooling ourrespective expertise and streamlining our processes, especially inthe area of information technology, are key advantages in thisever-changing industry,” said Monique Leroux, chair of the boardand president/CEO of Desjardins Group.

The strategic partnership will allow Qtrade to continue its workaccelerating Canadian credit union success in wealth management, including delivering products featuringsocially responsible investing principles, said Scott Gibner,CEO of Qtrade.

“We are proud to partner with Desjardins, one of theworld's leading cooperative financial institutions, and to moredirectly participate in the Canadian credit union system,” Gibnersaid.

The required approvals have been received from the boards ofboth organizations for the transaction, according to Desjardins andQtrade.

The deal is expected to close during the second quarter of 2013,and remains subject to customary closing conditions includingcourt, shareholder and regulatory approvals.

“Qtrade has an excellent online trading platform and anexpertise which complements that of our subsidiary, Disnat. Theactivities of both entities give us a much stronger presence inonline brokerage enabling us to best serve our members andclients,” said Denis Berthiaume, senior vice president of wealthmanagement and life and health insurance for Desjardins.