SVB Financial Group of Santa Clara, California has agreed to buy Boston Private Financial Holdings in Boston.
The $ 96.9 billion SVB said in a press release Monday that it will pay $ 900 million in cash and stock for the $ 9.4 billion Boston Private. The transaction, which is expected to close in mid-2021, cost Boston Private 115% of its tangible book value.
The SVB said the acquisition will accelerate its foray into private banking and wealth management. Boston Private manages $ 16.3 billion in assets, far larger than SVB’s $ 1.4 billion.
“Our customers rely on us to increase the likelihood of their success – both in their business and personal lives,” said Greg Becker, President and CEO of SVB, in the statement.
“Boston Private’s experienced and respected team, robust service offering, and advanced technology platform will greatly enhance our capabilities in private banking and wealth management, and enhance our ability to offer products and services tailored to the needs of founders, executives, and investors.” added Becker. .
Anthony DeChellis, CEO of Boston Private, and Yvette Butler, Head of Private Banking and Wealth Advisory at SVB, will lead the combined private banking and wealth management business.
The deal is expected to result in a “low single-digit EPS increase” when factoring in $ 200 million in restructuring charges, SVB said in its presentation. These expenses include approximately $ 65 million related to technology systems integration – SVB plans to acquire Boston Private’s digital platforms.
The SVB plans to cut about a fifth of Boston Private’s noninterest expenses.
Goldman Sachs and Sullivan & Cromwell advised SVB. Morgan Stanley and Wachtell, Lipton, Rosen & Katz advised Boston Private.