Acquisition establishes BMO as a leader in the development of carbon credits, emissions measurement capabilities and the environmental commodities market
TORONTO, July 20, 2022 /PRNewswire/ – BMO Financial Group (NYSE: BMO) (TSX: BMO) announced today that it has entered into a definitive agreement to acquire Radicle Group Inc., a Calgaryleader in sustainability consulting 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 year 2022. Terms were not disclosed.
Founded in 2008, Radicle has earned a reputation as a leader in developing carbon offsets and helping organizations measure and reduce emissions. Radicle has 130 employees and more than 4,000 customers worldwide.
“The acquisition of Radicle supports BMO’s climate ambition to be our customers’ primary partner in the transition to a net zero world, and the progress we are making for a thriving economy, a sustainable future and an inclusive society” , said Dan Barclay, CEO, BMO Capital Markets. “Radicle’s industry-leading expertise and innovative solutions make BMO a leader in carbon credit development capabilities and the environmental commodities market. These capabilities reinforce our commitment to helping our customers understand and manage the risks and opportunities of the energy transition.
Upon closing, the management team and employees of Radicle will become part of the Global Markets group of BMO Capital Markets.
“We are thrilled to join BMO Capital Markets,” said Saj Shapiro, CEO, Radicle. “Radicle’s mission is to enable positive solutions for the planet by balancing economic interests with ecological impact. By joining BMO, Radicle will be able to continue to serve its existing customers, accelerate its emissions reduction efforts, expand its business across BMO’s customer network, develop additional sustainability services and penetrate new markets.
Carbon markets play an important role in mitigating the effects of climate change and achieving a sustainable future. Carbon Markets have grown significantly around the world in recent years as organizations and individuals manage risk and help evolve 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 advisor to BMO. Citi acted as financial advisor and Borden Ladner Gervais LLP acted as legal advisor 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 diverse and highly engaged team of employees, BMO offers a wide range of personal and commercial banking, wealth management and investment banking products and services. investment to more than 12 million customers and leads 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 businesses into tomorrow’s sustainable future. From its beginnings in Calgary, Canada, when Radicle developed an advanced software platform to measure, qualify and aggregate greenhouse gas emissions, the company went global to leverage data, knowledge and technology to safeguard our common future. Radicle works to enable positive solutions for the planet by increasing efficiency while reducing costs and emissions, based on the belief that financial and environmental sustainability are two sides of the same coin: the balance between both is possible. For more information, please visit radiclebalance.com to learn more.
Caution Regarding Forward-Looking Information
Certain statements contained in this press release are forward-looking statements. All such statements are made pursuant to the provisions of the “safe harbor” and are intended to be forward-looking statements under the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities laws. Forward-looking statements contained herein may include, but are not limited to, statements regarding the expected closing of the proposed transaction, the integration plans of Radicle Group Inc., our future strategies or actions, our goals and commitments, the regulatory environment in which we operate, the results or prospects of our operations, and include representations made by our management. Forward-looking statements are generally identified by words such as “will”, “should”, “should”, “believe”, “expect”, “anticipate”, “project”, “intend”, ” estimate”, “plan”, “goal”, “commit”, “target”, “may”, “could”, “schedule”, “plan”, and “might” 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. There is a significant risk that any 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 difficulty 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 may be difficult to predict – could cause actual future results, conditions, actions or events differ materially from the objectives, expectations, estimates or intentions expressed in the forward-looking statements.
Future results related to forward-looking statements may be influenced by many factors, including, but not limited to: the possibility that the proposed transaction may not close when expected or at all due to required regulatory approvals and other closing conditions are not received or satisfied on a timely basis or at all or are received subject to adverse conditions or requirements; the expected benefits of the proposed transaction are not realized on time or at all due to changes in general economic and market conditions, laws and regulations and their enforcement, and the degree of competition in the the business areas in which Radicle Group Inc. operates; Radicle Group Inc.’s business may not perform as expected or in a manner consistent with historical performance; the ability to integrate Radicle Group Inc. quickly and efficiently; diversion of management time on transaction-related issues; the evolution of our loan portfolios over time, the need for active and ongoing stakeholder engagement (including corporations, financial institutions, and governmental and non-governmental organizations), the development and deployment of new industry-specific technologies and solutions, international cooperation, the development of regulations on an international scale, our ability to successfully implement various initiatives on schedule, and the compliance of various third parties with our policies and procedures and legal requirements; and other factors discussed in the Risks that could affect future results section, and the sections relating to credit and counterparty, market, insurance, liquidity and funding, non-financial operational, legal and regulatory risks, strategic, environmental and social, and reputational risks, in the Enterprise-Wide Risk Management section of BMO’s 2021 Annual Report and in the Risk Management section of BMO’s Second Quarter 2022 MD&A, which describe all certain key factors and risks that could affect our future results and our ability to anticipate and effectively manage risks arising from all of the above factors. We draw your attention to the fact that the above 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 uncertainty inherent in forward-looking statements.
We do not undertake to update any forward-looking statements, written or oral, which may be made from time to time by or on behalf of the organization, except as required by law. The forward-looking information contained herein is presented for the purpose of assisting shareholders and analysts in understanding the proposed transaction and may not be appropriate for other purposes.
The Internet: www.bmo.com
SOURCE BMO Financial Group