OTTAWA (dpa-AFX) - Bank of Montreal (BMO.TO, BMO) announced Thursday that it has signed a definitive agreement to acquire Burgundy Asset Management Ltd. for around $625 million, payable in BMO shares.
The deal includes a $125 million holdback to be paid subject to Burgundy maintaining certain assets under management 18 months post-closing. An earn-out component may also be paid in the future based on the achievement of certain growth targets.
The acquisition is expected to close by the end of calendar 2025, subject to customary closing conditions including regulatory approvals.
Following the deal closure, Burgundy will operate as part of BMO Wealth Management. Burgundy's Chief Executive Officer, Robert Sankey, will continue to lead the business, and Burgundy Co-Founders Tony Arrell and Richard Rooney will also remain with the business.
Independent wealth manager Burgundy, founded in 1990, provides discretionary investment management for private clients, foundations, endowments, pensions and family offices with approximately $27 billion in assets under management, as of May 31. Burgundy's 150 employees serve clients from offices in Toronto, Vancouver and Montreal.
BMO expects the acquisition of Burgundy to be an expansion of BMO Wealth Management, and to strengthen its offering in the Canadian Investment Counsel space catering to high-net-worth and ultra-high-net-worth clients.
Deland Kamanga, Group Head, Wealth Management, BMO Financial Group, said, 'Burgundy Asset Management is one of Canada's most respected independent investment managers known for its high calibre team, rigorous investment process and dedicated service to private clients, institutions and family offices. The acquisition will build on BMO's heritage as a client-focused wealth manager while expanding our wealth advice and private investment counsel offering.'
In the deal, KMS Capital, Origin Merchant Partners and PJT Partners acted as financial advisors to Burgundy, while BMO Capital Markets acted as exclusive financial advisor to BMO.
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