BMO to buy environmental services leader Radicle Group Inc

Published on: 20 July 2022
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BMO Financial Group today announced the acquisition of Radicle Group Inc., a Calgary-based leader in sustainability advisory services and solutions, as well as technology-driven emissions measurement and management. As a result of the acquisition, BMO is now a market leader in carbon credit development, emissions measurement capabilities, and the environmental commodity market.

BMO Financial Group today announced the acquisition of Radicle Group Inc., a Calgary-based leader in sustainability advisory services and solutions, as well as technology-driven emissions measurement and management.

The transaction is being carried out through a plan of arrangement and is subject to regulatory approvals and other customary conditions. It is scheduled to close by the end of 2022. The financial terms were not disclosed.

Radicle, which was founded in 2008, has established a reputation as a leading developer of carbon offsets and for assisting organizations in measuring and reducing emissions. Radicle employs 130 people and serves over 4,000 clients worldwide.

"The acquisition of Radicle complements BMO's Climate Ambition to be our clients' lead partner in the transition to a net-zero world, as well as the progress we're making toward a thriving economy, a sustainable future, and an inclusive society,"

said Dan Barclay, CEO of BMO Capital Markets.

"BMO is a leader in carbon credit development capabilities and the environmental commodity market thanks to Radicle's leading expertise and innovative solutions. These capabilities strengthen our commitment to assisting our clients in understanding and managing the risks and opportunities associated with the energy transition."

After the transaction is completed, the Radicle management team and employees will join BMO Capital Markets' Global Markets group.

"We are thrilled to be joining BMO Capital Markets,"

said Saj Shapiro, CEO of Radicle.

"Radicle's mission is to enable planet-positive solutions by balancing economic and environmental interests. Radicle will be able to continue serving its existing customers, accelerate its efforts to reduce emissions, scale its activities across BMO's client network, develop additional sustainability services, and enter new markets by joining BMO."

Carbon markets are critical to mitigating the effects of climate change and enabling a sustainable future. Carbon markets have expanded significantly around the world in recent years as organizations and individuals manage risk and help scale the technologies required to achieve net zero emissions.

BMO Capital Markets served as financial advisor to the transaction, and Torys LLP served as legal counsel to BMO. Radicle's financial advisor was Citi, and its legal counsel was Borden Ladner Gervais LLP.

BMO has been serving customers for 200 years and counting. It is a highly diversified financial services provider and the eighth largest bank in North America by assets. 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 operates through three operating groups: Personal and Commercial Banking, BMO Wealth Management, and BMO Capital Markets, with total assets of $1.04 trillion as of April 30, 2022, and a team of diverse and highly engaged employees.

Radicle guides today's forward-thinking businesses toward a more sustainable future. Radicle began in Calgary, Canada, with the development of an advanced software platform to measure, qualify, and aggregate greenhouse gas emissions. Since then, the company has expanded globally to leverage data, insights, and technology to protect our shared tomorrow. Radicle works to enable planet-positive solutions by increasing efficiency while lowering costs and emissions, with the belief that financial and environmental sustainability are two sides of the same coin that can be balanced. For more information, please visit radiclebalance.com.

Source: BMO newsroom

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