Ameriprise Financial, Inc. has completed its previously announced acquisition of BMO Financial Group’s (BMO) EMEA Asset Management business for £615 million, or approximately $829 million1, subject to customary adjustments. The all-cash transaction adds approximately $131 billion of AUM, bringing Ameriprise total assets under management and administration to more than $1.3 trillion.
Jim Cracchiolo, Chairman and Chief Executive Officer, commented, “We’re pleased to complete this strategic acquisition that significantly extends our reach in EMEA and adds important capabilities to Columbia Threadneedle. The BMO GAM EMEA business is performing well with positive flows, which complements the organic growth we’ve been driving. And importantly, clients and institutional consultants have responded favorably. We welcome the team to Ameriprise and Columbia Threadneedle and look forward to what we are able to accomplish together.”
The acquisition accelerates Ameriprise’s strategy of growing its fee-based businesses and increasing the overall contribution of Wealth Management and Asset Management within its diversified business. It 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 acquisition adds key capabilities in growing segments, including Responsible Investment, Liability Driven Investing, Fiduciary/outsourced management (OCIO) and European Real Estate.
The addition of BMO’s EMEA asset management business increases Columbia Threadneedle’s AUM to more than $714 billion with geographic balance in both North America and EMEA and a growing presence in APAC. In addition, the acquisition establishes a strategic relationship with BMO Wealth Management giving its North American Wealth Management clients opportunities to access a range of Columbia Threadneedle investment management solutions. Separately, the transaction will result in certain BMO U.S. asset management clients moving to Columbia Threadneedle, at a later date subject to client consent.