The acquisition by BMO Financial Group, a wholly-owned subsidiary of Bank of Montreal, is subject to shareholder approval at this stage.
The board of F&C said it intends to recommend unanimously that its shareholders vote in favour of the takeover – with the deal expected to be rubber stamped by 1 May.
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Richard Wilson, chief executive of F&C, said: "Looking forward, BMO represents a unique opportunity to broaden and accelerate our ambitions.
"The products, geographic presence and cultures of both organisations are truly
complementary and with BMO's commitment to growth, this is clearly a very positive outcome for both our clients and employees."
Bill Downe, BMO chief executive, said: "With an established pedigree in fixed income investment and broad equity and property capabilities across its European platform, F&C advances BMO's capabilities by adding scope and scale to our well-established portfolio of wealth management businesses.
"BMO is the oldest bank in Canada and our ties with the UK have been present since our founding.
"We move forward today with the same confidence and optimism as when the bank opened its doors on Lombard Street nearly 150 years ago."
F&C's assets under management stood at £82billion as of December 31, the company also announced today.