BMO Financial Group continued its strategic approach to expansion in the United States with the Friday announcement that it has signed a definitive agreement to purchase New York- based Gerard Klauer Mattison for $44 million in BMO stock.

The bank says the acquisition establishes a solid equity research, sales and trading platform in the United States. It also strengthens the organization’s Canadian franchise by providing significantly expanded research on U.S. companies to BMO’s Canadian institutional clients, and accelerates BMO’s growth in key markets across the U.S.

“This acquisition is a sound strategic fit that will benefit our Canadian clients and advance our U.S. growth strategy,” said William Downe, deputy chair, BMO Financial Group and CEO, BMO Nesbitt Burns. “GKM is also a significant addition to the equity division of BMO Nesbitt Burns, further enhancing the firm’s outstanding sales, trading and research capabilities.”

GKM is a privately owned mid-market investment bank with 195 employees in offices in New York, Chicago, Boston, San Francisco and Los Angeles. It brings a strong team of experienced equity research, equity sales and trading and investment banking professionals.

The banks says the acquisition is highly complementary to BMO Nesbitt Burns, BMO’s full-service North American investment bank and Harris Nesbitt, its Chicago-based mid-market investment and corporate banking group.

The acquisition will allow BMO Nesbitt Burns to significantly enhance its existing U.S. equity research coverage to Canadian institutional clients.

GKM is also expected to deliver an immediate benefit to BMO’s Media & Communications and Energy groups based in New York, Houston, Calgary and Toronto by expanding equity capital market and research capabilities to these sectors.

In the U.S. mid-market, GKM presents a significant opportunity to Harris Nesbitt, allowing it to offer a broader range of products and services to clients. GKM adds an additional 650 investing and issuing clients to Harris Nesbitt’s current roster of 1,500.

The acquisition is the 11th by BMO Financial Group in the U.S. in less than four years. The purchase price of the transaction is approximately $44 million ($US 30 million), subject to certain adjustments, and will be satisfied by exchanging BMO stock for the outstanding shares of GKM. It is expected to close within 90 days, subject to regulatory approval.

GKM will be known as Harris Nesbitt Gerard and become the U.S. equity research, sales and trading platform of BMO Nesbitt Burns.