BMO Financial Group (TSX, NYSE: BMO) continues its strategic approach of selective and substantial expansion in the United States with the announcement today that it has acquired certain assets of California-based myCFO. The acquisition builds on the organization’s wealth management distribution capability in key markets across the U.S.

myCFO is a provider of customized investment and advisory services to wealthy families. It brings an attractive high net worth client base, a team of professional wealth advisors and capabilities and services that are highly complementary to BMO’s private banking business in the U.S.

The acquisition will expand and enhance the family office and investment capabilities of The Harris. In addition, it includes client centres in six new metropolitan areas previously identified by BMO as targets for private bank expansion: Los Angeles, San Francisco, Orange County and Mountain View, California; Denver, Colorado and Atlanta, Georgia. They will join Harris Private Bank’s existing offices in Arizona, Florida, Washington and Illinois. 

The transaction is the ninth by BMO Financial Group in the U.S. in less than three years. The addition of myCFO’s assets adds approximately $US 5.7 billion ($Cdn 9 billion) in assets under administration. The transaction is valued at $US 30 million ($Cdn 47 million). Excluding one-time costs, the impact of the transaction on the organization’s cash EPS is nominal and it will be cash neutral by year three and accretive thereafter. It is expected to close by calendar year-end, subject to regulatory approval.

myCFO will become part of The Harris, BMO’s U.S. wealth management business, which offers clients direct investing through Harrisdirect and its top-ranked technology platform, full service investing, mutual funds, institutional money management and private banking. In May 2000, The Harris Private Bank model was also adopted in Canada as BMO Harris Private Banking.

BMO Financial Group’s wealth management businesses in Canada and the United States are part of the organization's Private Client Group. The Private Client Group provides integrated wealth management services and has total assets under management and administration and term investments of $Cdn 273 billion ($US 173 billion), excluding the assets of Morgan Stanley Individual Investor Group accounts, which will be reflected in the fourth quarter.

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization. It includes BMO Bank of Montreal, its Canadian retail arm, Chicago-based Harris Bank, a major Mid-west financial services provider, and BMO Nesbitt Burns, one of Canada’s largest full-service investment firms.

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