BMO Acquires Radicle Group Inc., a Leader in Environmental Services
Bank of Montreal
BMO Financial Group said it entered into a definitive agreement to buy Calgary-based Radicle Group Inc., a pioneer in sustainability advisory services and solutions, as well as technology-driven emissions measurement and management.
The transaction is being carried out by way of a plan of arrangement and is contingent on the receipt of all necessary regulatory approvals and other customary conditions. It is anticipated to conclude by the end of 2022. The terms were not revealed.
Radicle is a company founded in 2008 that has a reputation for being a prominent creator of carbon offsets and for assisting organisations in measuring and reducing emissions. Radicle has 130 employees and more than 4,000 customers worldwide.
BMO Capital Markets CEO, Dan Barclay, said:
"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. 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 helping our clients understand and manage the risks and opportunities of the energy transition."
Saj Shapiro, the CEO, of Radicle, said:
"We are very excited to join BMO Capital Markets. 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 a significant role in mitigating climate change and fostering a sustainable future. In recent years, carbon markets have expanded globally as corporations and individuals manage risk and assist in scaling the technology required to reach net zero.
BMO Capital Markets worked as financial advisor for the transaction, while Torys LLP served as BMO's legal counsel. Citi served as financial advisor to Radicle, while Borden Ladner Gervais LLP provided legal guidance.
Source: BMO Financial Group