BMO announced on Friday that it had agreed to obtain Burgundy Asset Management in a deal worth about $ 625 million.
This step expands the bank’s wealth management services for high -value customers of high networks.
The deal will witness Burgundy, the independent director of wealth, which includes about 27 billion dollars of management assets as of May 31, incorporated into the BMO wealth management.
Burgundy’s experience is said to have estimated investment management for private customers, institutions, pensions and family offices throughout Canada.
Dyland Camanga, head of the wealth group in the BMO Financial Group, described Burgundy as “one of the most respected independent investment managers in Canada,” adding that the deal “will be based on the BMO heritage as a wealth manager who focuses on the customer with the expansion of our wealth advice and private investment offers.”
Under the terms of the agreement, BMO will pay in common shares, with $ 125 million in a total total, and it depends on Burgundy to maintain certain levels of assets after 18 months. An additional profit may be paid if the growth goals are achieved.
Burgundy will keep the leadership team, as CEO Robert Sanky continued to lead the work after the acquisition. The participating founders, Tony Araril and Richard Rooney, will remain with the company.
“We are pleased to join BMO, the leader of North America, and we think this is a great opportunity to continue to serve our customers in the future.”
The deal is expected to be closed by the end of the year.