BMO announced Friday that it has agreed to acquire Burgundy Asset Management in a deal worth approximately $625 million.
BMO Agrees $625m Deal to Acquire Burgundy Asset Management
The move expands the bank’s wealth management services for high-net-worth and ultra-high-net-worth clients.
The transaction will see Burgundy, an independent wealth manager with around $27 billion in assets under management as of May 31, integrated into BMO Wealth Management.
Burgundy’s expertise is said to be in its discretionary investment management for private clients, foundations, pensions, and family offices across Canada.
Deland Kamanga, Group Head of Wealth Management at BMO Financial Group, described Burgundy as “one of Canada’s most respected independent investment managers,” adding that the deal “will build on BMO’s heritage as a client-focused wealth manager while expanding our wealth advice and private investment counsel offering.”
Under the terms of the agreement, BMO will pay in common shares, with $125 million of the total held back, contingent on Burgundy maintaining certain asset levels 18 months after closing. An additional earn-out may be paid if growth targets are achieved.
Burgundy will retain its leadership team, with CEO Robert Sankey continuing to lead the business post-acquisition. Co-founders Tony Arrell and Richard Rooney will also remain with the firm.
Arrell commented: “We are happy to be joining BMO, a North American leader, and believe this is a great opportunity to continue to serve our clients well into the future.”
The deal is expected to close by year-end.
