BMO Wealth Management is buying Burgundy Asset Management Ltd., the wealth management firm that serves high-net-worth clients and institutions with roughly $27 billion in assets under management. The $625 million deal — announced Thursday — is expected to close at year-end.
“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,” said Deland Kamanga, group head, wealth management at BMO Financial Group in a media release. “The acquisition will build on BMO’s heritage as a client-focused wealth manager while expanding our wealth advice and private investment counsel offering.”
Burgundy will do business as part of BMO Wealth Management. Robert Sankey, the firm’s CEO, will remain atop the operation.
“It has always been our intention to build Burgundy for the long run, so we can serve our clients and their families across generations,” said Tony Arrell, chairman and co-founder of Burgundy Asset Management Ltd. “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 $625 million purchase price will be paid in BMO common shares and will include a $125 million holdback to be paid if Burgundy maintains an agreed-upon level of assets under management 18 months after the deal closes.