Ameriprise Financial Inc. today said it has signed a definitive agreement with BMO Financial Group (BMO) to acquire its Europe, Middle East and Africa (EMEA) asset management business for £615 million, or about $845 million, in an all-cash deal, according to a news release.
The transaction adds $124 billion of AUM in Europe and is expected to close in the fourth quarter, subject to regulatory approvals in the relevant jurisdictions, the release said.
The acquisition allows Ameriprise to boost its core strategy of growing its fee-based businesses and increase the overall contribution of wealth management and asset management within its diversified business, the company said. With BMO’s EMEA asset management business, Ameriprise will have more than $1.2 trillion of assets under management and administration.
The deal also 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, the release said. Columbia Threadneedle Investments is the global asset management group of Ameriprise. The addition of BMO’s EMEA asset management business will increase Columbia Threadneedle’s AUM to $671 billion, and significantly increase EMEA AUM and expand AUM in the region to 40% of total Columbia Threadneedle AUM, the release said.
The purchase gives U.S. clients opportunities to access a range of Columbia Threadneedle investment management solutions, the company said. It also includes the opportunity for certain BMO asset management clients to move to Columbia Threadneedle, subject to client consent.
“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,” Jim Cracchiolo, chairman and CEO of Ameriprise Financial, said in a statement. “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."
Ted Truscott, Threadneedle Investments CEO, said the addition of 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,” he said.