July 27 (Reuters) - First National Financial ( FNLIF )

said on Sunday it has reached an agreement to be acquired by

private equity firm Birch Hill Equity Partners and asset manager

Brookfield Asset Management ( BAM ) in a deal valuing the

company's equity at $2.9 billion.

First National said that Birch Hill and Brookfield will buy

its shares for $48 each in cash. Founders Stephen Smith and

Moray Tawse will each sell two-thirds of their current

shareholding in the company.

First National said that Jason Ellis is likely to remain CEO

of the Canadian financial services company, with the current

leadership team also expected to stay in place following the

completion of the transaction.

With more than $155 billion in mortgages under

administration, First National is one of Canada's largest

non-bank mortgage originators and underwriters.