Bank of Montreal Buys Burgundy Asset to Boost Wealth Unit (3)

Bank of Montreal is buying Burgundy Asset Management Ltd., boosting its wealth management business by adding an established Canadian firm that manages money for affluent individuals, pensions and foundations.

The bank will pay C$625 million ($456 million) in shares, with 20% of that amount conditional on Burgundy maintaining a minimum level of assets under management for 18 months after the deal closes.

Toronto-based Burgundy had about C$27 billion under management at the end of May, with 150 employees operating out of offices in Toronto, Vancouver and Montreal. Co-founders Tony Arrell and Richard Rooney and Chief Executive Officer Robert Sankey ...