Columbia Threadneedle Investments parent firm Ameriprise Financial, Inc. said it signed a definitive agreement with Toronto based BMO Financial Group (BMO) to acquire its Europe, Middle East and Africa (EMEA) asset management business for £615 million.
The all-cash transaction adds $124 billion of assets under management (AUM) in Europe for Columbia Threadneedle and is currently expected to close in the fourth quarter of 2021, subject to regulatory approvals in the relevant jurisdictions.
The addition of BMO’s EMEA asset management business will increase Columbia Threadneedle’s assets to $671 billion.
It will expand assets in the region to 40% of Columbia Threadneedle’s total AUM.
“The acquisition will further accelerate Ameriprise’s core strategy of growing its fee-based businesses and increase the overall contribution of wealth management and asset management within its diversified business,” said Ameriprise.
“Together with BMO’s EMEA asset management business, Ameriprise will have more than $1.2 trillion of assets under management and administration.
“The acquisition complements Columbia Threadneedle Investments’ core business and global growth strategy, adding a substantial presence in the European institutional market and considerably expanding its investment capabilities and solutions to meet growing client demand.”
Ameriprise Financial CEO Jim Cracchiolo 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.”
Columbia Threadneedle CEO Ted Truscott said: “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.
“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.”