TORONTO -- The Bank of Montreal (BMO.TO) is set to acquire New York-based KGS-Alpha Capital Markets for an undisclosed amount.
BMO Financial Group says it has entered into a definitive agreement to buy the fixed income broker-dealer, which specializes in the institutional investor market for U.S. mortgage-backed and asset-backed securities.
The Canadian lender says KGS-Alpha complements its capital markets division's existing mortgage-backed securities business.
KGS has 135 employees, largely concentrated in New York, but also has seven other offices across the United States.
It will be rebranded as BMO Capital Markets after the acquisition is complete.
The transaction is expected to close during BMO's fiscal fourth quarter, which ends Oct. 31, subject to approvals.
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