Ameriprise Financial to Acquire BMO's EMEA Asset Management Business

Ameriprise Financial, a leading global asset manager, has signed a definitive agreement to acquire BMO Financial Group's EMEA asset management business for approximately $845 million. The acquisition, which is expected to close in the fourth quarter of 2021, subject to regulatory approvals, will add $124 billion of assets under management (AUM) in Europe to Ameriprise's existing business.

This strategic move 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. The acquisition will also establish a strategic relationship with BMO Wealth Management, providing Ameriprise with opportunities to access a range of investment management solutions for its North American Wealth Management clients.

Key Takeaways:

The acquisition will add $124 billion of AUM in Europe to Ameriprise's existing business, bringing the total AUM to over $1.2 trillion.
The transaction is expected to be accretive in 2023 and generate an internal rate of return of 20%.
The acquisition will expand and enhance Columbia Threadneedle's established strengths and accelerate its strategy, positioning the company well to respond to the developing needs of its clients.
The addition of BMO's EMEA asset management business will increase EMEA AUM and expand AUM in the region to 40% of total Columbia Threadneedle AUM.
The acquisition will add depth and breadth in traditional asset classes, including publicly traded investment trusts and closed-end funds.
The transaction is subject to regulatory approvals in the relevant jurisdictions and is expected to close in the fourth quarter of 2021.

Statistics:

$845 million: approximate value of the acquisition
$124 billion: AUM added in Europe through the acquisition
$1.2 trillion: total AUM of America Threadneedle after the acquisition
40%: expected expansion of EMEA AUM as a percentage of total Columbia Threadneedle AUM
20%: internal rate of return expected from the transaction

Sources:

(NYSE:AMP)
News Release by Ameriprise Financial, Inc., dated April 12, 2021
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