BMO Financial Group has reached an agreement to sell its U.S. retirement services business to OneAmerica for an undisclosed amount.
The BMO division has more than 200 professionals with about 830 plans.
“With this acquisition, we’ll increase our assets under administration by approximately US$26 billion,” says OneAmerica president and CEO Scott Davison. “This brings our total to more than US$70 billion—double our total less than two years ago.”
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BMO says its decision to sell its Milwaukee-based retirement services division is consistent with BMO Global Asset Management’s strategy to focus on its asset management business.
“The transaction will not change BMO’s role in managing a portion of the investments in the plans moving over to OneAmerica as well as acting as the directed trustee and custodian for those plans,” says Barry McInerney, co-CEO of BMO Global Asset Management.
The transaction is expected to close during the third quarter of this year.
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