The Bank of Montreal (BMO) just sold its U.S. retirement services business to an Indianapolis-based recordkeeper.

Bill Yoerger OneAmerica President, Retirement Services Division

Bill Yoerger, president of the retirement services division for OneAmerica, confirmed today that OneAmerica has reached an agreement to acquire BMO's Milwaukee-based, U.S. retirement services business, BMO Retirement Services, a division of BMO Global Asset Management [profile]. BMO’s U.S. retirement services business has more than 200 professionals with approximately 830 plans and following this acquisition, OneAmerica will increase its AUM by $26 billion.

In early June, MFWire's sister publication, the 401kWire, reported on BMO prepping to sell its recordkeeping business. BMO entered the retirement realm about four years ago when it purchased Marshall & Ilsley Corporation in July 2011. According to the news release, BMO's decision to sell its U.S. retirement business aligns with BMO's strategy to focus on its asset management sector.

“Adding BMO’s retirement services business enhances our already strong position as a leader in the retirement services industry and complements our high-touch, relationship-based service model,” states OneAmerica president and CEO Scott Davison, who took the helm as CEO last year. “With this acquisition, we’ll increase our assets under administration by approximately $26 billion. This brings our total to more than $70 billion—double our total less than two years ago.”

The transaction is expected to close during the third quarter of calendar year 2015.  

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