In a bold move that reshapes Canada’s wealth management landscape, BMO Financial Group announced Thursday its acquisition of Toronto-based Burgundy Asset Management for $625 million, marking one of the largest Canadian wealth management deals this year.
The all-cash transaction brings Burgundy’s $40 billion in assets under management into BMO’s growing portfolio, significantly bolstering the bank’s position in the high-net-worth client segment where competition has intensified among Canada’s financial institutions.
“This acquisition represents a strategic alignment of two organizations with complementary strengths,” said Deland Kamanga, CEO of BMO Wealth Management. “Burgundy’s exceptional reputation for client service and investment expertise enhances our ability to serve sophisticated investors seeking comprehensive wealth solutions.”
Founded in 1991, Burgundy has built its reputation on a disciplined value-investing approach, serving primarily high-net-worth individuals, families, and institutional clients. The independent asset manager employs approximately 150 professionals and has maintained a client retention rate above 95% over the past decade.
The deal comes amid significant consolidation in Canada’s wealth management sector. According to industry data, assets managed by independent firms have declined by nearly 20% since 2019 as banks and larger financial institutions pursue aggressive acquisition strategies to capture market share.
Robert Sankey, CEO of Burgundy, who will join BMO’s senior leadership team following the acquisition, emphasized continuity for clients: “Our investment philosophy and client-first approach will remain unchanged. This partnership provides us with expanded resources while preserving the culture and investment discipline that has defined Burgundy for over three decades.”
Financial analysts note the acquisition’s premium valuation—approximately 15.6 times Burgundy’s annual earnings—reflects the scarcity of independent managers with significant scale and established high-net-worth relationships.
“BMO is paying a premium, but they’re acquiring a difficult-to-replicate client base and investment talent,” said James Hunter, financial services analyst at Canaccord Genuity. “In today’s competitive environment, organic growth in the high-net-worth segment is challenging and time-consuming.”
The transaction, subject to regulatory approvals, is expected to close by September 2025. BMO anticipates the acquisition will be accretive to earnings within the first year post-integration, with cost synergies estimated at $30 million annually.
For BMO, this acquisition continues its strategic expansion in wealth management following last year’s integration of Bank of the West’s wealth operations. The bank has publicly stated its goal of doubling wealth management revenues by 2028.
As wealth transfer between generations accelerates—with an estimated $1 trillion in assets changing hands in Canada over the next decade according to CO24 Business—financial institutions are positioning themselves to capture this massive shift in investable assets.
The question remains whether Burgundy’s distinctive investment culture can be preserved within BMO’s larger corporate structure—a challenge that has derailed previous wealth management acquisitions in the Canadian market.
