Canada's BMO deepens wealth management push with $455 million Burgundy purchase

June 19 (Reuters) - Bank of Montreal BMO.TO is buying Burgundy Asset Management in a C$625 million ($455 million) deal, the companies said on Thursday, as the Canadian lender looks to expand its footprint in the wealth management space.

The acquisition follows a playbook several Canadian banks have adopted in recent years to diversify their revenue streams. Managing the wealth of high-net-worth clients offers a steadier source of income compared to more cyclical businesses like lending or trading.

Of the purchase price, C$125 million will be paid if Burgundy maintains a certain level of assets under management 18 months after the deal closes, which is expected by the end of 2025, the companies said.

Burgundy, founded in 1990, has 150 employees and managed around C$27 billion of assets as of May 31.

BMO Wealth Management reported C$363 million in adjusted net income in the second quarter, up 13% from the year before.

($1 = 1.3745 Canadian dollars)