Ameriprise Financial, which owns Columbia Threadneedle, is to buy the EMEA asset management business of BMO Financial Group, in an all-cash transaction for £615m (€710m).
Announcing the deal today, Ameriprise said it would take Columbia Threadneedle’s assets under management (AUM) to $671bn (€563bn). Assets under management in the Europe, Middle East and Africa (EMEA) region would increase to 40% of total Columbia Threadneedle AUM, it said.
In IPE’s 2020 Top 500 asset manager ranking, Columbia Threadneedle was the 47th largest global asset manager. The acquisition of BMO’s EMEA asset management business would see it jump more than a dozen places, all else being equal.
Ameriprise said 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”.
It highlighted responsible investment, fiduciary management, European real estate, and liability-driven investing as segments where the BMO business has “leading positions that can be leveraged globally”.
In the US, the transaction includes an opportunity for certain BMO asset management clients to move to Columbia Threadneedle, subject to client consent, Ameriprise said.
Jim Cracchiolo, chair and CEO, Ameriprise Financial, said: “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.”
Ted Truscott, CEO, Columbia Threadneedle Investments, said adding BMO’s EMEA asset management business was “an exceptional growth opportunity”.
“Critical to this opportunity is the strong alignment between our organisations,” he added. “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 acquisition is expected to close in the fourth quarter this year, subject to regulatory approvals. Its announcement comes less than a week after Amundi revealed it was set to buy Lyxor.