National Bank of Canada to Buy Embark Student Corp. for C$226 Million

By Amara Osei

National Bank of Canada has entered a definitive agreement to acquire Embark Student Corp. for an estimated C$226 million. The deal adds Embark's digital Registered Education Savings Plan (RESP) platform, which manages more than C$6 billion in assets for approximately 436,000 beneficiaries across Canada.

What does National Bank of Canada gain?

National Bank of Canada said the acquisition expands its education savings and wealth management capabilities. It strengthens the bank's presence in Ontario and Western Canada and supports its strategy to expand digital financial services.

Embark Student Corp., headquartered in Toronto, is one of Canada's largest direct-to-consumer education savings providers, according to National Bank of Canada. Its online tools cover education savings planning, account administration, investment management and government grant applications.

Embark said the company aims to simplify financial preparation for children's education by combining digital account management with specialized savings services. Its platform helps families establish, manage and invest through RESPs, tax-advantaged accounts designed to support postsecondary education expenses.

National Bank of Canada said the deal gives it access to Embark's established customer base and a technology-enabled savings platform serving families throughout Canada. The bank intends to combine those capabilities with its existing wealth management and financial advisory resources. It said education savings products can complement broader banking and investment services and strengthen relationships with Canadian households.

National Bank of Canada is one of Canada's six systemically important banks, with approximately C$635 billion in assets as of July 31, 2026. It employs approximately 37,000 people across personal banking, commercial banking, wealth management and capital markets, alongside its ABA Bank operations.

Why are the companies joining?

Nancy Paquet, Executive Vice-President, Wealth Management at National Bank of Canada, said:

“We are happy to see Embark joining National Bank. This transaction is strongly aligned with our savings and investment advisory strategy for our clients, combining Embark’s digital capabilities with National Bank’s strengths to deliver a best-in-class education savings experience and expand our presence across Canada. We look forward to welcoming Embark’s employees and clients in the next months.”

Andrew Lo, CEO and President of Embark Student Corp., said:

“Joining forces with National Bank accelerates our mission to make education savings accessible to every Canadian parent. This partnership reflects a shared commitment to that goal, and it’s why this is the right fit at the right time. We are excited to continue delivering best-in-class RESP services and advice, now alongside National Bank.”

How is the acquisition structured?

Under the proposed transaction, Embark Student Foundation, a nonprofit and Embark's sole shareholder, will transfer its RESP undertaking and associated obligations to Embark in a corporate reorganization, National Bank of Canada said. A wholly owned National Bank subsidiary will then acquire Embark's shares from the foundation.

The estimated C$226 million purchase price remains subject to working capital adjustments. National Bank of Canada expects the acquisition to reduce its Common Equity Tier 1 capital ratio by approximately 10 basis points upon closing.

When will the deal close, and what changes for customers?

National Bank of Canada expects the acquisition to close by the middle of its fiscal 2027, subject to court and regulatory approvals and other customary conditions. After closing, the foundation will temporarily continue serving as promoter of the Embark plans while Embark maintains its current administrative responsibilities.

National Bank of Canada said the promoter role is expected to transfer to Embark in mid-2027 after the required governmental approvals are obtained. The independent review committee overseeing the Embark plans said it had reviewed the proposed transaction and determined it would produce a fair and reasonable outcome for the plans.

National Bank of Canada said existing customers are not expected to experience immediate changes to their services, investments or account agreements. During the transition, Embark will continue administering RESPs, submitting applications for government grants and providing digital account access.

Who advised the parties?

According to National Bank of Canada, Raymond James served as financial adviser to Embark, McCarthy Tétrault provided legal counsel and PricewaterhouseCoopers performed financial due diligence. Fasken Martineau DuMoulin served as legal counsel to National Bank of Canada.

The C$226 million transaction now depends on court and regulatory approvals before its planned mid-fiscal-2027 close. National Bank of Canada has said Embark's digital tools will complement its wealth management and financial advisory resources, while existing customers are not expected to see immediate changes to services, investments or account agreements.