BMO Capital Markets,today announced a definitive agreement today to acquire Chicago-based Griffin, Kubik, Stephens & Thompson Inc.

The acquisition will make BMO Capital Markets the sixth-largest bank qualified municipal bond dealer in the United States and the largest in Illinois, greatly accelerating BMO’s national presence in the U.S. municipal bond market.

Griffin Kubik is an independent, full-service registered investment dealer specializing in debt securities, including municipal bonds, U.S. Treasury debt, agencies and mortgage-backed securities. The company employs more than 100 people and caters to institutional and individual investors as well as U.S. government agencies, schools and non-profit issuers. Services include fixed income trading, underwriting, portfolio analysis and research.

“This acquisition allows us to grow our U.S. fixed income business by broadening our scope and more than doubling the size of our municipal bond business,” says Tom Milroy, CEO, BMO Capital Markets.

“Municipal bonds are a client-driven business that fit well with our overall strategy and we believe the outlook for this business is favorable going forward,” Milroy added.

“Griffin Kubik will bolster BMO Capital Markets’ reach into markets that we are already focused on such as the Healthcare, Education and Financial Institutions sectors. Likewise, the acquisition creates an opportunity for us to pursue new markets such as the growing infrastructure market and to offer additional services such as fixed income portfolio analysis and asset liability systems for banks,” says Charlie Piermarini, executive managing director and head of debt products & securitization, BMO Capital Markets.

Griffin Kubik has offices in Chicago, Monticello, Illinois and Milwaukee, Wisconsin and serves clients in 47 states and Puerto Rico.

The acquisition is anticipated to close in June 2008, subject to approvals from U.S. and Canadian regulators. The terms of the deal are not being disclosed.