Canada's BMO Pushes Further Into Wealth Sector With Burgundy Deal

Tom Burroughes

23 June 2025

BMO, a Toronto-listed banking group, has agreed to buy Burgundy Asset Management Ltd, a fellow Canadian firm with C$27 billion in assets under management.

The purchase price is about C$625 million, payable in BMO common shares, including a C$125 holdback to be paid if Burgundy maintains certain assets under management for 18 months after the deal is closed. An earn-out component may also be paid if certain growth targets are hit.

Part of BMO’s rationale is to expand into the high net worth and ultra-HNW sector, it said in a statement late last week.

The transaction is expected to close by the end of calendar 2025, subject to customary closing conditions including regulatory approvals, BMO said.

"Burgundy Asset Management is one of Canada's most respected independent investment managers known for its high caliber team, rigorous investment process and dedicated service to private clients, institutions and family offices," Deland Kamanga, group head, wealth management, BMO Financial Group, said. "The acquisition will build on BMO's heritage as a client-focused wealth manager while expanding our wealth advice and private investment counsel offering."

Upon closing, Burgundy will operate as part of BMO Wealth Management and Burgundy's CEO, Robert Sankey, will continue to lead the business. Burgundy co-founders Tony Arrell and Richard Rooney will also remain with the business.

Burgundy, which was founded in 1990, employs 150 people, operating from Toronto, Vancouver and Montreal.

KMS Capital, Origin Merchant Partners and PJT Partners acted as financial advisors to Burgundy on the transaction. Torys LLP acted as legal counsel.

BMO Capital Markets acted as exclusive financial advisor to BMO on the transaction. Osler, Hoskin & Harcourt LLP acted as legal counsel.