Ameriprise Financial signed a definitive agreement to acquire BMO Financial Group’s EMEA money management business in a £615 million ($850 million) all-cash deal.
The agreement will add $124 billion in European assets under management and is set to complete in the fourth quarter, subject to regulatory approvals.
The acquisition will complement Ameriprise-owned Columbia Threadneedle Investments’ core business and global growth strategy, adding a substantial presence in the European institutional market, an Ameriprise news release said. Columbia Threadneedle’s AUM will increase to $671 billion and push EMEA AUM to 40% of its total assets.
Ameriprise and BMO also struck a separate deal for U.S. clients, giving certain BMO money management clients the opportunity to move to Columbia Threadneedle Investments. Terms of the U.S. deal were not disclosed, a separate news release by BMO said.
The deal allows BMO to focus on long-term profitability as a North American bank and wealth manager “and enables us to focus our resources where we have a competitive advantage and are well-positioned to deliver growth and accretive returns," Joanna Rotenberg, group head, BMO Wealth Management, said in the BMO release. "We will continue to invest in our diversified North American wealth businesses, including our Canadian asset management business, to provide an unrivalled experience for our clients as their needs change."
A spokesman for BMO could not immediately be reached for comment.
Under the acquisition, BMO Wealth Management also established a strategic relationship with Ameriprise to give its North America-based wealth management clients access to Columbia Threadneedle strategies.
“Adding BMO’s EMEA asset management business is an exceptional growth opportunity,” Ted Truscott, CEO at Columbia Threadneedle, said in the Ameriprise release. “The transaction advances our strategy and enhances our geographic and asset class diversification, enabling us to serve more clients and meet more of their needs. Critical to this opportunity is the strong alignment between our organizations. We share a client-centric culture, fundamental belief in active management, collaborative and research-based investment approach, and long-held commitment to responsible investment principles.”
It is anticipated that the majority of BMO’s more than 800 staff in EMEA will join Columbia Threadneedle including some of the senior team, a spokeswoman for CTI said.
“For those teams and capabilities that are new to Columbia Threadneedle we don’t envisage major change and it will be largely business as usual as we welcome new teams to Columbia Threadneedle.
Where we have established teams we will look to enhance our existing capabilities by bringing together talent and expertise from both organizations,” she added.