Ameriprise Financial has agreed to purchase the EMEA asset management business of BMO Financial in an all-cash deal worth around $845m (£615m).
The transaction will bring $124bn of AUM to Ameriprise, increasing its total AUM to more than $1.2trn.
The deal, which awaits regulatory nod, is said to fast-track Ameriprise’s plan of boosting its fee-based operations. It will also increase the overall contribution from wealth and asset management, noted Ameriprise.
Additionally, in the US, the deal enables certain BMO asset management clients in the US to join Columbia Threadneedle. This will be subject to the permission of clients.
With the addition of BMO’s EMEA asset management unit, Columbia Threadneedle’s AUM will increase to $671bn.
It will increase AUM in the region to 40% of total Columbia Threadneedle AUM.
BMO Wealth Management group head Joanna Rotenberg 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.”
The deal, upon completion in the final quarter of this year, is anticipated to be accretive in 2023.
Columbia Threadneedle Investments CEO Ted Truscott said: “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 organisations. 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.”
The latest development comes a few months after it was reported that Bank of Montreal (BMO) is considering options for its asset management unit, including a partial sale.