Ameriprise Financial has bought BMO Financial Group’s Emea asset management business for around $845m (£615m).
The transaction will be fully paid in cash and is expected to close in Q4 2021, subject to regulatory approvals in all the relevant jurisdictions.
The deal adds $124bn of assets under management in Europe to Ameriprise which, at completion, will reach over $1.2trn in AUM.
The US advice firm said the acquisition accelerates its plans to grow its fee-based businesses and increase the overall contributions of the wealth management and asset management divisions to the group.
It added that the addition of BMO’s Emea arm complements its global asset management division Columbia Threadneedle Investments and gives it a “substantial presence” in the European institutional market, expanding Columbia’s AUM in the region to 40% of its total.
Strategic relationship
On top of the acquisition, the two firms agreed to a strategic relationship between Ameriprise and BMO Wealth Management to allow BMO’s North American wealth clients access to Columbia Threadneedle investment management solutions.
US-based BMO asset management clients will also be given the opportunity to move over to Columbia Threadneedle if they wish to do so.
Jim Cracchiolo, chairman and chief executive of Ameriprise Financial, said: “We’ve built an outstanding global asset manager that complements our leading wealth management business and generates strong results.
“BMO’s Emea asset management business will be a great addition to Columbia Threadneedle that will deliver meaningful value for clients and our business.
“This strategic acquisition represents an important next step as we expand our solutions capabilities, broaden our client offering and deepen our talented team. We are a disciplined acquirer and believe this transaction will build on our track record of successful acquisitions for the benefit of clients and our other stakeholders.”
‘Next level of growth’
Ted Truscott, chief executive of Columbia Threadneedle Investments, added: “Adding BMO’s Emea asset management business is an exceptional growth opportunity. 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.
“Establishing a new strategic relationship with BMO Wealth Management is an important benefit of the transaction. We will bring an even stronger set of capabilities to serve the needs of their wealth management clients in Canada and the US”
Joanna Rotenberg, group head at BMO Wealth Management, said: “Columbia Threadneedle Investments is a strong strategic and cultural fit for our Emea asset management business and is well positioned to take it to the next level of growth by extending its reach, scale and investment capabilities.
“We look forward to our strategic relationship and offering our North American wealth management clients opportunities to access a wide range of Columbia Threadneedle investment management solutions.”
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