Canaccord president and CEO Dan Daviau said the acquisition built on the work its Australian division had done to make the company a stronger competitor in the region.
"The addition of Patersons supports our strategy of substantially increasing the scale of our wealth management operations and improving our business mix to deliver greater stability and long-term value for our clients and our shareholders.
"We look forward to supporting continued growth in Australia."
The transaction will be implemented via a scheme of arrangement. Patersons directors and senior management, representing 60% of shareholders, have committed to vote in favour of the deal.
"This business combination creates a leading Australian capital markets, stockbroking and wealth management business with a powerful offering for our respective corporate, institutional, and private clients," Canaccord Australia managing director Marcus Freeman said.
"The cultural alignment between the two teams has been clear from our first interaction and has been the foundation for all discussions."
Canaccord is planning to implement an equity incentive program for key Patersons employees to increase stock exposure and provide a link between strategic objectives, market practice and the established culture of ownership and entrepreneurialism while attracting, motivating, and retaining employees.
Canaccord's Australian wealth management business will be known as CG Patersons, with Patersons executive chairman Michael Manford to be executive chairman of the enlarged group.
"The rationale for joining Canaccord Genuity is compelling and provides additional breadth and depth of services for our clients, who will benefit from access to globally integrated wealth management, corporate finance and equity research capabilities," he said.
"Most importantly, the Patersons and Canaccord Genuity Australia teams place a high value on employee partnership and lasting client relationships."
Patersons, founded in 1903, posted 2018 financial year revenue of $61.8 million and net income of $3.2 million.
The business is expected to be break-even this financial year after a "difficult" first half.
A Patersons shareholder vote is expected to be held in October, with the deal to close soon after.