Acquisition makes BMO a leader in carbon credit development,
emissions measurement capabilities, and the environmental commodity
market
TORONTO, July 20,
2022 /CNW/ - BMO Financial Group (NYSE: BMO)
(TSX: BMO) today announced that it has entered into a definitive
agreement to acquire Radicle Group Inc., a Calgary-based leader in sustainability
advisory services and solutions, and technology-driven emissions
measurement and management.
The transaction is subject to receipt of required regulatory
approvals and other customary conditions. It is expected to close
by the end of calendar 2022. Terms were not disclosed.
Founded in 2008, Radicle has established a reputation as a
leading developer of carbon offsets and for helping organizations
measure and reduce emissions. Radicle has 130 employees and over
4,000 clients globally.
"The acquisition of Radicle supports BMO's Climate Ambition to
be our clients' lead partner in the transition to a net-zero world,
and the progress we're making for a thriving economy, a sustainable
future, and an inclusive society," said Dan
Barclay, CEO, BMO Capital Markets. "Radicle's leading
expertise and innovative solutions make BMO a leader in carbon
credit development capabilities and the environmental commodity
market. These capabilities enhance our commitment to help our
clients understand and manage the risks and opportunities of energy
transition."
Upon closing, the Radicle management team and employees will
become part of BMO Capital Markets' Global Markets group.
"We are very excited to join BMO Capital Markets," said Saj
Shapiro, CEO, Radicle. "Radicle's mission is to enable
planet-positive solutions by balancing economic interests with
ecological impact. By joining BMO, Radicle will be able to continue
serving its existing customers, accelerate its emissions reduction
efforts, scale its activities across BMO's client network, develop
additional sustainability services, and enter new markets."
Carbon markets play an
important part in curbing the effects of climate change and
enabling a sustainable future. Carbon markets have grown substantially around
the globe in recent years as organizations and individuals manage
risk and help scale the technologies needed to reach net zero.
In connection with the transaction, BMO Capital Markets acted as
financial advisor and Torys LLP acted as legal counsel to BMO. Citi
acted as financial advisor and Borden Ladner Gervais LLP acted as
legal counsel to Radicle.
About BMO Financial
Group
Serving customers for 200 years and counting, BMO is a highly
diversified financial services provider - the 8th largest
bank, by assets, in North America. With total assets
of $1.04 trillion as of April 30, 2022, and a team
of diverse and highly engaged employees, BMO provides a broad range
of personal and commercial banking, wealth management and
investment banking products and services to more than 12 million
customers and conducts business through three operating groups:
Personal and Commercial Banking, BMO Wealth Management and BMO
Capital Markets.
About Radicle Group Inc
Radicle helps guide today's progressive companies towards
tomorrow's sustainable future. From early beginnings in
Calgary, Canada, when Radicle
developed an advanced software platform to measure, qualify, and
aggregate greenhouse gas emissions, the company has taken root
internationally to leverage data, insights, and technology to
safeguard our shared tomorrow. Radicle works to enable
planet-positive solutions by increasing efficiency while lowering
costs and emissions, based on the belief that financial and
environmental sustainability are two sides of the same coin:
balance between the two is possible. For more information, please
visit radiclebalance.com to learn more.
Cautionary statement regarding
forward-looking information
Certain statements in this press release are forward-looking
statements. All such statements are made pursuant to the "safe
harbor" provisions of, and are intended to be forward-looking
statements under, the United States Private Securities Litigation
Reform Act of 1995 and any applicable Canadian securities
legislation. Forward-looking statements in this document may
include, but are not limited to, statements with respect to the
expected closing of the proposed transaction, plans for the
integration of Radicle Group Inc., our strategies or future
actions, our targets and commitments, the regulatory environment in
which we operate, the results of, or outlook for, our operations,
and include statements made by our management. Forward-looking
statements are typically identified by words such as "will",
"would", "should", "believe", "expect", "anticipate", "project",
"intend", "estimate", "plan", "goal", "commit", "target", "may",
"might", "schedule", "forecast" and "could" or negative or
grammatical variations thereof.
By their nature, forward-looking statements require us to make
assumptions and are subject to inherent risks and uncertainties,
both general and specific in nature. There is significant risk that
predictions, forecasts, conclusions or projections will not prove
to be accurate, that our assumptions may not be correct, and that
actual results may differ materially from such predictions,
forecasts, conclusions or projections. The uncertainty created by
the COVID-19 pandemic has heightened this risk, given the increased
challenge in making assumptions, predictions, forecasts,
conclusions or projections. We caution readers of this document not
to place undue reliance on our forward-looking statements, as a
number of factors – many of which are beyond our control and the
effects of which can be difficult to predict – could cause actual
future results, conditions, actions or events to differ materially
from the targets, expectations, estimates or intentions expressed
in the forward-looking statements.
The future outcomes that relate to forward-looking statements
may be influenced by many factors, including, but not limited to:
the possibility that the proposed transaction does not close when
expected or at all because required regulatory approvals and other
conditions to closing are not received or satisfied on a timely
basis or at all or are received subject to adverse conditions or
requirements; the anticipated benefits from the proposed
transaction are not realized in the time frame anticipated or at
all as a result of changes in general economic and market
conditions, laws and regulations and their enforcement, and the
degree of competition in the business areas in which Radicle Group
Inc. operates; the business of Radicle Group Inc. may not perform
as expected or in a manner consistent with historical performance;
the ability to promptly and effectively integrate Radicle Group
Inc.; diversion of management time on transaction-related issues;
the evolution of our lending portfolios over time, the need for
active and continued participation of stakeholders (including
enterprises, financial institutions and governmental and
non-governmental organizations), the development and deployment of
new technologies and industry-specific solutions, international
cooperation, the development of regulations internationally, our
ability to successfully implement various initiatives under
expected time frames and the compliance of various third parties
with our policies and procedures and legal requirements; and those
other factors discussed in the Risks That May Affect Future Results
section, and the sections related to credit and counterparty,
market, insurance, liquidity and funding, operational
non-financial, legal and regulatory, strategic, environmental and
social, and reputation risk, in the Enterprise-Wide Risk Management
section of BMO's 2021 Annual Report, and the Risk Management
section in BMO's Second Quarter 2022 MD&A, all of which outline
certain key factors and risks that may affect our future results
and our ability to anticipate and effectively manage risks arising
from all of the foregoing factors. We caution that the foregoing
list is not exhaustive of all possible factors. Other factors and
risks could adversely affect our results. Investors and others
should carefully consider these factors and risks, as well as other
uncertainties and potential events, and the inherent uncertainty of
forward-looking statements.
We do not undertake to update any forward-looking statements,
whether written or oral, that may be made from time to time by the
organization or on its behalf, except as required by law. The
forward-looking information contained in this document is presented
for the purpose of assisting shareholders and analysts in
understanding the proposed transaction and may not be appropriate
for other purposes.
Internet: www.bmo.com
Twitter: @BMOMedia
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SOURCE BMO Financial Group