In a calculated move set to shake up Canada’s investment advisory landscape, BMO Financial Group announced it will acquire Burgundy Asset Management Ltd. for CA$625 million ($455 million)—a strategic transaction poised to deepen BMO’s reach into high-net-worth and ultra-high-net-worth markets.
The acquisition, spearheaded by Osler Hoskin & Harcourt LLP for BMO and Torys LLP for Burgundy, will see the acclaimed independent asset manager folded into BMO’s wealth management division, signaling a bold bid to fortify BMO’s elite financial services offerings.
Structure: Shares, Holdbacks, and Earn-Outs
The deal includes BMO common shares as part of the purchase consideration, along with a CA$125 million ($91 million) holdback, contingent on Burgundy maintaining a targeted level of assets under management (AUM) for 18 months post-closing.
In addition, an earn-out clause offers Burgundy the potential for further payout should specific growth benchmarks be met—aligning long-term incentives with performance.
As of May 31, 2025, Burgundy managed a robust $27 billion in AUM, positioning it as a formidable force in discretionary investment management. The firm caters to a distinguished clientele of individuals, pensions, endowments, foundations, and family offices through its offices in Toronto, Vancouver, and Montreal.
